Rural battle heats up
The battle for control of Rural Equities, the company which manages the NZ Rural Property Trust, has taken another turn with Sir Selwyn Cushing's company H&G Ltd hitting back at St Laurence.
Wednesday, June 9th 2004, 6:59AM
St Laurence made a stand in the market for 19.9% of the company at $1.50 a share, then only to withdraw it on the grounds it confused shareholders.
H & G has described it as a "Claytons" stand in the market.
"What they are asking Rural Equities shareholders to do is to make a binding offer to sell to St Laurence, without St Laurence having any obligation to purchase the shares, while St Laurence remains free to accept offers on a different basis," H & G director David Cushing says.
H&G is offering shareholders $1.25 a share, but has extended the offer date from June 24 to July 8.
It is considering raising the price. Cushing says shareholders who have already accepted the offer will be paid the higher price.
He has told shareholders that “H & G is in this for the long haul”. The company and certain of its associates already control about 35% of Rural Equities.
If it succeeds with its partial offer H & G will end up owning 40.8% of the company, but with its associates will control it with 50.1%.
Rural Equities was split off from Hawkes Bay rural services firm Williams and Kettle earlier this year. It manages the New Zealand Rural Property Trust and also owns 32% of the trust.
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