Fernz timber-preserver deal

Press, 6 September 1989, Page 37

Fernz timber-preserver deal

By

NEILL BIRSS

The burgeoning Fernz Corporation has traded a parcel of its shares for world rights to distribute a timber-preservation product. Fernz shares have shot up this year. Yesterday they rose 5c bringing them back to Friday’s price of 690, which compares with 382 at the beginning of the year. Fernz, which changed its name from New Zealand Farmers’ Fertilizer in 1984, successfully diversified into chemicals in the early 1980 s.

It announced yesterday that it had placed 229,000 fully-paid 100 c shares with Kristobel, Pty, Ltd, a private company in Western

Australia. Kristobel, which largely represents the interests of one person, has investments in building and property. The shares were issued to Kristobel at 420 c, which Mr Kerry Hoggard, the managing director of Fernz, said yesterday was the market value at the time of initial negotiation. •

Fernz will co-ordinate manufacturing of the timber-preservation products in Australia and New Zealand and will co-ordinate their marketing and distribution in Australasia, the Pacific islands, China, Japan, and South-East Asia.

Mr Hoggard sees three or four aspects to

the new popularity of Fernz shares with investors. • He and other executives have done much public relations work over the last two years bringing the company to the notice of investors. • There are fewer opportunities for investors to have a holding in chemicals, now that Ivon Watkins-Dow has been taken off the Stock Exchange and ICI New Zealand is under offer from its Australian parent. • Fernz is a good recovery stock. As the farming economy picks up, so have Fernz’s sales. The company’s fertiliser sales were up 50 per cent in the first quarter,.