BNZ seat unlikely for ‘workers’ rep.’

Press, 26 July 1989, Page 32

BNZ seat unlikely for ‘workers’ rep.’

PA Auckland Bank of New Zealand shareholder, Mr Robert Terry, is expected to lose his bid to become a director of the bank at its annual meeting in Wellington today. A Napier resident, Mr Terry, who says he owns a dairy farm, builds houses and runs an electrical business, is running for the board as a “workers’ representative, meaning everyone in New Zealand”. Three others will also be seeking election to the board: economist Len Bayliss, who is up for reelection after his term has expired; and Michael Fay and Robin Congreve, who were appointed during the last year and must now be elected by shareholders. Three other directors, including chairman Frank Pearson, are retiring from the board and are scheduled to be replaced by appointment of two new members after today’s annual meeting. What Mr Terry must do

to claim the ninth seat is receive the support of the majority of shareholders, BNZ corporate affairs manager, Mr John Leonard, said.

And that depends on how the Government, with 84.5 per cent of the shares, casts its vote. A spokeswoman for the Minister of Finance, Mr Caygill, said yesterday the Government would not support Mr Terry.

The two directors retiring from the BNZ board along with Mr Pearson are Peter Leeming and Pat Morrison.

After today’s meeting, Auckland businessman Syd Pasley is expected to be appointed chairman and Auckland lawyer Mr Geoff Ricketts, a partner with Russell McVeagh McKenzie Bartleet & Co, is expected to be made a director. Shareholders at the meeting will also be asked to approve a bank proposal that it raise SUSI7S million in additional capital.

This represents the last SNZ2OO million of the SNZ6OO million capital injection being underwritten by the Government.

The first $4OO million is the rights issue to shareholders that closes August 4. The Government plans to sell $3OO million of its entitlement to Capital Markets, Ltd.

Depending on the outcome of the rights issue, Capital Markets is expected to end up owning about 30 per cent of the BNZ and the Government be left with 52 or 53 per cent.

The bank is not yet certain how it will raise the last SNZ2OO million, but it thinks it may be, cost effective to do it in US dollars. Hence the SUSI7S million proposal, Mr Leonard said. That amounts to considerably more than SNZ2OO million, but the bank wants approval for the extra money to cover exchange rate fluctuations and other costs.

“It gives us a bit of leeway,” Mr Leonard said.