Options on Cardrona

Press, 19 May 1989, Page 16

Options on Cardrona

PA Dunedin The ski-ing assets of Cardrona Group may be fully transferred to Australian interests by the end of the year under put and call options discosed in the company’s annual report. Vealls Securities and Finance bought 50 per cent of the assets last year for $6.5 million. Cardrona has granted a call option to the Australian company at a price between $3.5M and $6.5M until November 30. Vealls has granted a put option to Cardrona exercisable in December at a fixed price of $3.5M. Cardrona’s auditors, Peat Marwick, say it is not possible to determine whether the options will be exercised or at what ' prices. Cardrona’s

chairman, Mr lan Farrant, said yesterday he did not know whether either option would be exercised. The options underline changes in Cardrona which has embarked on a career as an investment company. The annual meeting of the company this week approved the change of name from Cardrona Ski Area to Cardrona Group. Shareholders at the annual meeting expressed concern at the lack of an independent director to represent the minority shareholders. The directors are all associated with the property company Kiwicorp Group. The annual report said the company had had a particularly good 14 months of operations.

The joint venture arrangement over the ski assets with Vealls, a Melbourne-based company, resulted in gross operating revenue of $3.3M. After-tax profit was $2,516,000 (last year: $827,000). An unrealised increase in investment property was $1,152,000 (nil). After extraordinary items of $751,000 ($29,000) the consolidated group profit was $2,917,000 ($798,000). Money generated during the year had been used to buy 39% of Paynter Corporation, the Christchurch construction and timber company.

Cardrona also bought the 66 room Country Lodge Hotel at Fernhill, Queenstown, which has been leased to Newrnans for 10 years.