Navistar bid reaches 85%

Press, 28 June 1989, Page 34

Navistar bid reaches 85%

PA Auckland Shareholders owning 85 per cent of property company Navistar Corporation have so far accepted the offer by chairman, Mr Gary Lane, Mr Lane told shareholders at the company's annual meeting that he expected to soon reach the 90 per cent acceptance level on which the offer hinges. The 20c a share offer will expire on Friday. "We’re pretty happy with our response,” Mr Lane said. He said more than 10,000 of Navistar’s 23,000 small shareholders have agreed to tender. The two biggest holders have already agreed to sell into the offer, being made by Mr Lane’s private company, Terrapene Holdings Ltd. The two big shareholders are Mr Lane's own partnership with fellow director, Mr Graeme Edwards, which owns 51 per cent, and Elders

Resources NZFP, with 24 per cent.

Nevertheless, Mr Lane drew criticism from some shareholders at the meeting who were irate that Terrapene’s offer is only half Navistar’s net asset value.

“We are asked to accept a report that says asset backing is 37c, but an offer of only 20c. Both can’t be right,” said one shareholder. Another shareholder who vowed to hold on to his shares said: “If you think the shares are worth 20c or better, then so do I.” At issue is the value of 10.5 M Elders Resources NZFP shares held as collateral for a loan made to Rada Corporation.

Navistar has written down that asset by SI2M to the share value of S33M. But Mr Lane warns future legal action could threaten Navistar’s claim to those shares.