News Round Up

Tough times in the financial markets are having a significant impact on the Government's tax take.

Finance minister Michael Cullen says one of the most significant contributions to growth in company taxes in recent years has been from the property and business services sector.

"The finance and insurance services sector continues to contribute the largest percentage of cash payments to company tax, although its contribution has decreased markedly over the last three years," he says.

"In 2000 it contributed about 29%. In 2001 it contributed about 24%. And in the 2001-02 fiscal year its contribution retracted to 18%, a tax take now close to that of manufacturing.

"The result is a more balanced company tax profile than has appeared to be the case in the past, when the finance and insurance services sector dominated. The reduction in the contribution of the finance and insurance services sector is obviously in part a result of reduced income from the fall in world equity prices. Nevertheless, aspects of the sector such as banking remain highly profitable.

Promina starts wooing investors
Trans-Tasman insurance and financial services company, Promina Group has started its stock exchange listing process by offering investors the opportunity to pre-register for its share offer.

Promina owns more than 28 insurance and financial services businesses and brands, including Royal & SunAlliance, AA Insurance and Guardian Trust in New Zealand.

Investors who pre-register for the share offer will receive a copy of the investment statement, which will have the prospectus attached.

New Zealand customers of Promina who pre-register then decide to invest will receive preference in allocation over general applicants and a guaranteed allocation of at least $5,000 worth (at the retail offer price) of shares (subject to scale back in the event of over-subscription in the retail offer).

Non-customers who pre-register and decide to invest will also receive preference in allocation over general applicants and a guaranteed minimum allocation of at least $3,500 worth (at the retail offer price) of shares (subject to the same scale back provisions).

All retail investors will also receive a discount on the final offer price.

Promina's UK-based parent company Royal & SunAlliance Group plans to sell the majority of its Asia Pacific operations through this initial public offering. Only the Australian and New Zealand operations would be included in the IPO.

Waltus to go
Property syndicator Waltus Investments will disappear when it is merged into the new $400 million Urbus Properties which aims to list on the Stock Exchange in May.

Urbus director Shayne Hodge says Waltus Corporate Management will change its name to Urbus Properties, the new company structure which took over most of the Waltus syndicates.

Management of the few remaining Waltus syndicates would also change, he said. Waltus Prime Properties (owner of the KPMG Building on Princes St in Auckland), Empire State Properties (owner of space in Auckland's Metropolis tower) and Colonel Properties (owner of a Penrose office block associated with KFC) will all be managed by International Property Management, associated with Urbus.