CHH share nod

Press, 18 February 1989, Page 18

CHH share nod

PA Auckland Carter Holt Harvey shareholders approved steps that could lead to the creation of up to 125 million shares, at. aspecial meeting yesterday. # The shares are linked to a new issue of convertible securities and the adjustment of an earlier issue. The chairman, Mr Richard Carter, said the funding proposals totalled about S3OOM. A third of this money will be used to restructure convertible securities, equivalent to about 38M shares. The securities were issued on the Swiss market during 1986-87. The rest will be for “complementing longterm debt financing of the Caxton purchase.” The company secretary, Mr Neville Keen, said the new issue would be made on the Swiss market because the company knew it would be difficult for shareholders to raise funds in New Zealand at present. If the issue were made here the volume would downgrade the value of shares, he said. The directors sought approval to go back to the Swiss market to restructure the earlier issue The security holders will be offered a conversion rate more in line with the present price of Carter Holt shares, about $2.50, rather than the precrash price of more than $5, Mr Keen said. That means security holders will get more shares for their securities and therefore be encouraged to convert them. If all securities were converted soon, the equity ratio of the CHH group would rise to about 50 per cent.