Ranks Hovis loses on GFW deal

Press, 11 September 1989, Page 29

Ranks Hovis loses on GFW deal

NZPA-AAP Sydney Rejected suitor, Ranks Hovis McDougall, exited from Goodman Fielder Wattie with a loss of more than sAust66 million (SNZBSM) on its holding after giving up hope of a recovery in the Australasian group’s share price. The British conglomerate quelled fears of another predator emerging on the register of the trans-Tasman food group by selling its 14.9 per cent holding to-, a spread of local and offshore institutions.

But Ranks only managed to secure 5393.2 M or 212 c each for the 154.2 million shares, well below the current market value and a sharp discount to its average entry price of 255 c four months ago.

Dr John Keniry, GFW’s director of administration, said the company was “quite pleased with the outcome” after months of uncertainty. The stake was sold to BZW Australia which acted as principal in the sale.

The share block has been on the market since May when Goodman Fielder scuppered RHM’s $3.18 takeover bid by disposing of its 29.9 per cent in Ranks to Kerry Packer’s Sunningdale Holdings consortium for SBBSM. Ranks’ chances of profiting or breaking even on the sale dissipated after GFW entered into an abortive SI.BB deal in early June aimed at snaring Industrial Equity, which depressed its share price.