Approval to lift stake in Ariadne

Press, 31 March 1989, Page 14

Approval to lift stake in Ariadne

NZPA-AAP Brisbane Ariadne Australia, Ltd, shareholders approved a share purchase deal that would increase Essington, Ltd’s, holding to 37.18 per cent, the Ariadne chairman, Barry Capp, said.

He told shareholders the official result of the vote was 73.52 million shares (68 per cent) for, and 35.28 million (32 per cent) against. Invalid votes numbered 24.55 million, Mr Capp said. Essington, through its wholly-owned

subsidiary, Grylis Pty, Ltd, already holds 17.51 per cent of Ariadne’s issued capital. The proposal to boost its stake was supported 2 to 1 by independent directors — with Mr Capp opposing — while an independent report by Bankers Trust Australia Ltd said the deal “is not fair and reasonable for non-participating shareholders.” The 19.67 per cent sought by Essington is held by FAI Insurance Ltd, under mortgage to Magenta

Holdings Ltd, a 90 per-cent owned subsidiary of Ampersand International, Ltd, which has signalled its intention to make an all scrip takeover bid for Ariadne.

Magenta last year agreed to sell 146 million Ariadne shares to Essington at AustsBc each, which compares' with the current on-market price of about Aust! 9c.

Ampersand and Magenta said recently that they believed the agreement to sell to Grylis had lapsed

because of a failure to get Ariadne shareholder approval by January 31. Grylis countered, saying it had legal advice that it could extend the deadline for such a meeting. Essington, meanwhile, has asked

the Queensland Supreme Court to remove an unacceptable conduct declaration placed against it by the National Companies and Securities Commission (NCSC) after the acquisition of Ariadne shares by Essington and associated companies.