Forum Archive Index - February 2002

["Benjamin lam" <benlam@xtra.co.nz>]

According to Dow Jones newswire, Brierley (BIL)had recently sold off its %8.71 stakes in Coates Hire Ltd , a general equipment hire in Australia for A$25.92 million, producing almost A$10 million of gains over the book value of the shares.
Brierley shares in Singapore shot up %17 in Singapore this week, prompting the exchnage to query the company over the price hike. Brierley later released a statement announcing the deal. Brierley's shares listed on the NZSE mirrored the price hike in Singapore, rising from 40 cents to close at a year high of 47 cents.

Brierley said as a investment company, it is frequently engaged in large asset buying and selling, which in turn attributed to constant takeover rumours which produces volitility in its share price. Earlier this month, Brierley was involved in another takeove rumour concerning beverage manuafacturer Fraser & Neave, which Brierley owns a %11 stakes. Both companies' shares price rose on the back of the hostile takeover rumour. The rumour died down a few days later when Brierley revealed that it had sold down its F&N shares holding to %9.

 

However, Unlimited Magazine(www.unlimited.co.nz) pointed out that Brierley has a US$600 million debt due for repayment this June, and with its concentration of investments in the post 911 tourism industry, and worsening revenue performance, refinancing may not be an option, and Brierley may have to raise cash to make partial payments, which could explain the company's sudden change of hearts to part with 2% of takeover target F&N's shares at its all time high.

 

(Source: Dow Jones Newswire)

B. Lam

benlam@xtra.co.nz