$75M cheque for Jones

Press, 30 March 1989, Page 22

$75M cheque for Jones

PA Auckland The private company owned by property investor Mr Bob Jones is due to receive a cheque for $75 million on Monday, the “New Zealand Herald” reports. Shareholders at the annual meeting of Robt Jones Investments (RJI) in 1988 approved the purchase of a management contract from Robt Jones Holdings for S7SM, payable on April 1 this year.

The valuation of the contract will be reviewed on June 30, 1992, which could result in a further payment to the Jones private company, bringing the total to $92.5M.

” RJI managing director, Mr David Moriarty, said the company had decided to pay the S7SM in cash, using overseas funds al-

ready in place, because of the present market value of RJI shares.

Mr Moriarty believed that at least some of the

funds paid to Robt Jones Holdings would be used to acquire further RJI shares on-market. Although the initial purchase of the management contract was expected to have a negative impact on RJl’s cashflow, the purchase was expected to be self-funding within a year, he said.

The payment was expected to increase RJl’s debt-to-assets ratio from about 40 per cent to the low 40s, but the company would still trade in a positive cashflow. Monday will also be the first day shareholders in Robt Jones Investments will be able to apply for their one-for-ten loyalty bonus share issue. Shareholders must apply for their shares.