Asian group grabs 20% of NZ's Brierley<\/p>\n
WELLINGTON (Reuter): An Asian consortium snatched a 20 percent
\nstake yesterday in Australasia's largest listed investment
\ncompany, Brierley Investments Ltd (BIL).<\/p>\n
The raid on the New Zealand firm at NZ$1.40 (US$0.96) a share,
\nNZ$680 million in total, was all over in minutes with investors
\nqueuing to unload stock at a price 11 percent above the
\nprevailing level.<\/p>\n
Most analysts believe the consortium comprising Hong Leong
\nGroup, Malaysia; Hong Leong Group, Singapore; Salim Group,
\nIndonesia; Sembawang Corporation Ltd, Singapore; and Haw Par
\nBrothers of Singapore, paid a high price, if not too high.<\/p>\n
\"I'm stunned that they would want to go and pay NZ$1.40, I
\ncould understand NZ$1.30,\" said one.<\/p>\n
He believed the group had taken a very optimistic view of
\nBIL's British hotel chain, Thistle Hotels, which comprises nearly
\nhalf of BIL's NZ$9 billion of assets.<\/p>\n
The raid was welcomed by BIL as giving the investment company
\nand sometime corporate raider a cornerstone shareholder. It
\nimmediately offered a place to the group on its board.<\/p>\n
\"We are delighted,\" Chief Executive Paul Collins told Reuters.
\n\"We are also delighted to have a strong anchor shareholder.\"<\/p>\n
He said many of BIL 128,000 shareholders were discretionary
\ninvestors. \"To develop a relationship with a strong anchor
\nshareholder over time provides a much stronger foundation for us
\nto grow from.\"<\/p>\n
He said it was a strong recognition of the value within BIL
\ntoday and value that could be created in Australia and Asia in
\nthe future.<\/p>\n
Analysts and Collins agreed the consortium's investment was
\nrecognition of BIL's increasing involvement in Asia. Already the
\nSingapore government's investment arm, Temasek Holdings, is a
\nmajor shareholder, with a six percent stake bought in 1991.<\/p>\n
David Copley of Cavill White said the consortium could have
\npicked up the stake cheaper but said it have wanted to buy in
\nhurry. He viewed the move positively.<\/p>\n
\"It indicates that there is value in the stock and others have
\nrecognized that. It confirms the positive trend since the U.K.
\nhotel market picked up,\" he said.<\/p>\n
Analysts noted links in the hotel industry between BIL and
\nSingapore's Hong Leong group which controls CDL Hotels
\nInternational.<\/p>\n
\"With the Hong Leong group in there, you would have to think
\nthere is some possibility of doing something with Thistle,\"
\nCopley said.<\/p>\n
BIL has made no secret over recent years that it wants to
\nreduce its exposure to Thistle, but Collins said that links
\nbetween CDL and Thistle were not the driving force behind the
\ngroup's investment.<\/p>\n
\"The key thing we see with these guys is the growth in value
\nover time,\" Collins said.<\/p>\n
Collins disagreed with some analysts' estimates that BIL is
\nnow around 65 percent foreign-controlled, saying the true figure
\nwas about half. He said much of the 20 percent bought came from
\nforeign holders.<\/p>\n
He rejected a suggestion that the Asian group had invested in
\nBIL as a defensive play, and that the investment company was now
\noperating more as a fund manager. \"That's certainly not the way
\nthe company is managed. We are managed for growth,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-group-grabs-20-of-nzs-brierley-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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