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This is the by far the smallest number of decisions for April since 1990: 15 decisions compared to between 24 and 50 since 1991. Perhaps investors are being scared off by the current debate on overseas investment! Tiong group increases ownership of Regal Salmon to over 47% The Tiong “Group” of Malaysia has approval to be issued further shares in Regal Salmon Ltd, a public listed company currently 24.8% owned by Sheikh Suliman Olayan of Saudi Arabia. The 47.2 million 25 cent shares will be valued at $11,800,000 and give the Tiongs “not less than 47% of the issued capital in Regal Salmon.” However, the Tiongs are paying only $10 million because the shares will come from an issue of “unsecured convertible notes to a value of $10,000,000” which, along with the interest payable “are convertible to ordinary shares”. The Tiongs had previously raised their ownership to 10.06%, held through subsidiaries Callander and Oregon Forestry, but by May still had only a 11.33% holding (Press, “Regal Salmon stake”, 16/5/95, p.35). Regal, a commercial salmon farmer, has been in some trouble, with its shares at a very low level after a series of losses in recent years. In September 1994 its shares had a net tangible asset backing of 5.7 cents each and a dangerously high debt to debt plus equity ratio of 91.8% (Press, “Regal Salmon narrows loss after asset sales”, 15/12/94). It has recently disposed of assets including closing its Christchurch salmon feed mill run by Salmon Services (New Zealand) (Press, “Regal closing Chch plant”, 8/2/95, p.25), selling or closing hatcheries and smoke houses, and selling the Appellation Wines group (Press, “Regal Salmon narrows loss after asset sales”, 15/12/94). Richina of China/U.S.A. approved to take over Mainzeal construction company A China/U.S.A. consortium has approval to take control of construction and property development company Mainzeal Group Ltd by acquiring up to 50.95% of the issued share capital (79,382,088 50 cent shares) for $22,226,984. A very similar deal was approved in December 1994 (see decisions of that date) but fell through. It was revived in March – to the concern of some observers who feared unethical tactics. Though revived in March, notice it did not receive OIC approval until after the event. The consortium now comprises “from time to time”, Richina Enterprise Holdings Ltd, which is ultimately owned by Richina Equity Trust I of China, Anaconda Partners, L.P., which is ultimately owned by Junction Advisors Incorporated of the U.S.A., Chemical Asian Equity Associates L.P., which is a limited partnership of which Chemical Banking Corporation of the U.S.A. is a partner, R.E. Rainwater of the U.S.A., Ziff Investors Partnership L.P. II of the U.S.A., T.F. Frist II of the U.S.A., W.R. Frist of the U.S.A., P.F. and C.A. Elcan of the U.S.A., T.F. Frist of the U.S.A., P.C. Frist of the U.S.A., E. Metz of the U.S.A., J.M.R. Syme of Aotearoa, W.A. Caughey of Aotearoa, and T.J. O’Boyle of Aotearoa. In December 1994 it consisted of Richina, Anaconda, Chemical as now, but Tudor Global Trading Inc of the U.S.A., C.L. Heatley of Aotearoa, and Tappenden International Ltd of Aotearoa as the additional partners. Lopez Mena has approval for 100% ownership of Sea Shuttles The Uruguayan 66.9% owner of the ill-fated Sea Shuttles (NZ) Ltd Cook Strait fast ferry operator has approval to buy the remaining 33.1% for $4,812,500. “Given the difficulties which have arisen in the introduction of the fast ferry service, and certain issues which have arisen between the shareholders, neither two New Zealand shareholders wish to remain involved with the company. Mr (Juan Carlos) Lopez Mena states that he is committed to the success of the venture and has, therefore, agreed to purchase the minority interests.” “Certain issues” included a very public falling out between Aotearoa prima donna entrepreneur, Brooke McKenzie, and family, and the Uruguayan partner. He was dismissed as general manager in February but continued as a director after clashes with the company’s Picton manager, with a captain of their fast ferry (McKenzie had “interfered with the navigation” while it was on sea trials on Wellington Harbour and then threatened to sack the captain when he objected) and with the company’s first caterer. After repeated mechanical problems, the fast ferry, Albayzin, was banned from Tory Channel in darkness or bad conditions, because of poor visibility from the bridge and failure to hold a straight course. In March, a day after Lopez Mena assured staff of their jobs, all were made redundant. All were on individual contracts with no provision for redundancy – an object lesson, said Seafarer’s Union president, Dave Morgan. The union had been trying to negotiate a collective contract for 26 cabin crew and deck staff. The ferry itself is owned by a company controlled by Lopez Mena and his son (Juan Patricio Lopez): Buquebus of Buenos Aires, Argentina. Buquebus is also the largest shareholder in Sea Shuttles. McKenzie and Christchurch businessman Roger Swolf are the Aotearoa shareholders. Despite this cross-ownership, in March, Sea Shuttles was preparing a multimillion dollar claim against Buquebus. (Ref: Press, “Sea Shuttles drops general manager”, 4/2/95, p.1; “Poor visibility, steering woes led to ferry ban”, 18/2/95, p.3; “Sea Shuttles suspends operations”, 2/3/95, p.1; “Sea Shuttles plans to sue ferry owners”, 3/3/95, p.1.) Pilkington of U.K. buys Smith and Smith Glass from Carter Holt Harvey Pilkington Plc of the U.K. is buying out Smith and Smith Glass Ltd from its owner, Carter Holt Harvey Ltd, for a suppressed price. Eltin of Australia sets up subsidiary to excavate Macraes gold mine Australian open pit mining expert Eltin Ltd is setting up a subsidiary, Eltin Contracting Ltd in Aotearoa with establishment costs of $16 million. “The Eltin Group has been awarded a contract to supply open pit mining services to Macraes Mining Company Ltd at their Macraes Gold Mine in Otago. Eltin, who is a world leader in open pit and underground mining in terms of method and performance, will bring to New Zealand significant mining experience and expertise.” Nissan of Japan buys remaining 2% of Nissan Datsun Holdings for $1 million Nissan Motor Company Ltd of Japan is buying the remaining 1.967% of the shares it does not already own in Nissan Datsun Holdings Ltd for $1,001,020 so that it no longer needs to operate as a public company and to “enable the rationalisation of its business in New Zealand”.
Guardian Assurance restructures again In an internal restructuring, Guardian Royal Exchange Assurance Plc, a subsidiary of Guardian Royal Exchange Plc of the U.K. has approval to take over (for $0) Guardian Assurance Ltd, another subsidiary of the parent company. |
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