Francis set to exit Force Corporation

Thursday 8th March 2001

PETER FRANCIS: Show's over?

By Nicholas Bryant

The cash exit from Force Corporation its head, Peter Francis, has so badly wanted for a year is almost complete.

As The National Business Review went to press Mr Francis was expected to be about to put out a statement saying he would accept a $19.2 million cash offer from Sky City for his 50.2% holding in Force.

Force is a struggling cinema and property investment company with assets in New Zealand, Fiji and Argentina.

Sky City, the country's largest gaming and entertainment company, made the 25c a share cash offer for Mr Francis' 77 million shares three weeks ago.

An acceptance of the offer by Mr Francis is what Sky City requires before it would make any attempt to buy up the remaining 77.1 million shares in Force held by minorities.

But the 25c offer Mr Francis is set to take is likely to be too low for minority holders.

Force director Mike Daniel has told the NZSE he would not accept the 25c- a-share offer, while another likely to repel Sky City's bid is US-based Shamrock Holdings.

"If I'm a minority inside Force, I've paid 60c for the shares and I've got 15% of the company and then I see one major shareholder who's not really all that desirable being swapped for an industry player, I'm going to want to see how things play out.

"Why take 25c when there's more likely an upside through the transition of ownership?" an analyst said.

"Getting rid of Mr Francis will be good for the minorities," said another.

Any subsequent offer to minorities from Sky City is contingent on it receiving necessary consents under the Overseas Investment Regulations 1995 for the purchase of shares in Force.

The Overseas Investment Commission's approval has been sought by Sky and is expected within the next two weeks.

Any stand in the market by Sky City for shares in Force Corporation will not take place until receipt of OIC approval.

"Once OIC approval has been obtained Sky City will provide the market with further details regarding the timing and procedure for any stand in the market prior to proceeding," Sky City's spokeswoman Sonya Haggie said.

Peter Webb, of the OIC, said the commission's approval for Sky's bid was required because Force Corporation had an interest in land which exceeds .4ha containing a building registered under the Historic Places Act.

That building is on the site of Force's Imax entertainment centre in Queen St, Auckland.

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