Harlin reveals finance deal

Press, 14 August 1989, Page 28

Harlin reveals finance deal

NZPA-AAP Sydney The complex financial webb woven by John Elliott’s Harlin Holdings 1% for its sAusts.s6 billion ($NZ7.138) takeover move on Elders IXL was revealed on Friday in the long-awaited Part C document. If the so-called “Clayton’s” bid goes ahead, Harlin plans to draw on a chain of banks and financial institutions and Canadian brewer, Molson Companies, through loan facilities and equity funding. The Part C also disclosed concerns by BHP, Elders’ partner in the Beswick joint venture, about the deal and efforts undertaken to resolve them. Mr Elliott said Elders directors would advise shareholders not to take up the 300 c a share offer in their Part D response, which is due to be lodged with the Australian Stock Exchange today. He said the two independent directors, who had pressed Harlin to make a full bid after expressing concern about the sale of Petitio’s 17 per cent stake in the group, would not be making a recommendation. Mr Elliott said the First Boston Australia, Ltd, report on the deal, to be included in the Part D, would value the company at up to 375 c a share. Elders last traded at 299 c, just below the offer price. Difficulties in printing the 200-page Part D documents and accompanying reports for Elders shareholders has been blamed for delaying their release until after the week-end. Harlin currently owns 18.9 per cent of Elders, but is entitled to 747.93 million shares or 40.4 per cent. It also proposes to underwrite a 300 c a share offer for the Petitio holding, which is jointly held by AFP Group Pic and Goodman Fielder Wattle. Under financing arrangements for the 100 per cent bid, Hong Kong Bank of Australia has agreed to provide a sAust3.6B loan for Harlin through a banking syndicate, which includes National Australia, CIBC Australia and the Bank of Tokyo. Citibank is to put up a further sAustl.3B loan and there are two standby facilities through other institutions for up to sAust4Bo million. Molson, the Hong Kong and Shanghai Banking Corporation, Prudential-Bache Interfunding Inc., Grand Metropolitan and Compagnie Financiere de Suez have all agreed to take up stakes totalling sAust67s million in Harlin. The Part C showed that Karlin’s total debt would swell from sAust9B7M to sustA4.9B, compared to a growth in equity from sAust622M to sAustl.lß, as it moved to 100 per cent of Elders. It said details of the financing had been given to BHP, which is involved with Elders in Beswick, the holding company for a 23 per cent stake in the mining giant. The offer for all of Elders will remain open for one month from August 28. Elders said in a statement that because of delays in the documentation, the period of acceptances of the 17 per cent stake offered for sale by Petitio has been extended until September 15.