S. and T. reveals 25% Steel stake

Press, 29 July 1989, Page 23

S. and T. reveals 25% Steel stake

PA Wellington Steel and Tube Holdings yesterday said it has a 25 per cent interest in the consortium which bought New Zealand Steel this week. Helenas Corp, led by Broken Hill Proprietary Co. of Australia, headed off a bid from Fletcher Challenge for the steel manufacturer. In a $323 million deal, Helenus will buy Fisher and Paykel’s 20 per cent NZ Steel stake and the remaining 80 per cent from failed Equi-

ticorp. BHP has drawn Fisher and Paykel into the consortium as a 25 per cent shareholder. The other party with an interest in Helenus has yet to be revealed. Steel and Tube group’s .managing director, Mr Doug Thurston, said the finance for the investment was well within the company’s resources. But Helenus’ final financial structure was still to be determined, he added. Mr Thurston said Steel

and Tube had been a major participant in the steel industry in New Zealand for many years. An investment in NZ Steel was a logical extension of Steel and Tube’s interests, particularly as it was now concentrating for the future on that aspect of the group’s activities, he said. Steel and Tube reported an audited final loss of $6.76 million for the year ended March 31, almost double last year’s $3.79 million loss.