Stars sale soon

Press, 21 August 1989, Page 14

Stars sale soon

PA Wellington A deal to sell Stars Corporation’s travel firm to a United States company is now doubtful, but Stars expects to announce the sale of the Rainbow Springs fun park within days.

The sales talks are in line with a restructuring plan, announced after Stars reported a $9.7 million loss for the year ended May 31, 1988.

The executive chairman, Mr John Tapper, said Stars Corporation was likely to lose money on the sale of the Rotorua tourist park.

The sale, to another New Zealand company, was near to completion, Mr Tapper said. Stars Travel International, the group’s tourist agency, had been the subject of negotiations with a United States operator since late last year, but a sale was now doubtful, he said. “I think that it is unlikely those negotiations will come to anything.” Mr Tapper said Stars Travel was operating profitably, but would be sold if a reasonable offer was made.

The group’s main trading division is the sport-

ing-goods distributor, Kilwell Group. “We have not made any efforts to sell that,” Mr Tapper said.

Stars would continue to suffer financially as a result of its restructuring, he said.

Of Stars’ annual result, due out by the end of the month, he said: "I think that it will be in keeping with the general problems that have beset the economy over the last year.” Mr Tapper had earlier told the Stock Exchange that he knew of no reason for a 57 per cent drop in Stars share price on Tuesday.