NZI cash back

Press, 30 March 1989, Page 22

NZI cash back

PA Wellington All of the subscription money paid to NZI Corporation for its aborted $286 million cash issue has been returned to shareholders. About $l9O million had been received before NZI scrapped the share and convertible note issue on February 20, after announcing a $82.7 million third quarter loss. NZl’s corporate affairs adviser, Mr Owen Cook, said yesterday that the last of the refund cheques was posted about three weeks ago. The subscription money had been in a trust fund since it was received up to four months ago. The interest that the money had earned while in the trust fund was also paid out to shareholders, Mr Cook said. A revised issue is expected to be made after NZI announces its annual result, scheduled for about June 9. Mr Cook said shareholders would be in a better position to assess a revised offer after the profit was reported. The money the issue would have generated has been replaced by a $lOO million loan from NZl’s majority shareholder, Scottish-based General Accident Fire and Assurance.

General Accident also agreed to defer a $lBO million payment NZI owed it after last year’s agreement to buy GA's Australian and New Zealand businesses.

Mr Cook said the interest paid on the subscription money ranged from 12.9 per cent to 13.8%, depending on when it was deposited. The average interest paid was 13.5%, he said.