Turners Auctions 4 million share offer snapped up

By NZPA

Monday 9th September 2002

Turners Auctions' $6 million public share offer of four million shares at $1.50 per share has attracted large interest from share brokers prior to its launch today.

JB Were director of investment banking Andrew Barclay told NZPA that applications, available only from brokers and institutions, had exceeded the stock on offer by three times.

JB Were is lead manager for the float, for which there is no public share pool.

The float represents about 15 percent of Turners Auctions.

The shares are expected to start trading on the New Zealand Stock Exchange on October 4, the company said in an advertisement in newspapers today.

After the offer, Guinness Peat Group will hold 39 percent of the company, an Ecuadorean company associated with Bonita bananas will hold 22 percent, and the public will hold 39 percent.

The offer differed to other floats this year, such as Skellmax, because shareholders received new capital, not the stakes sold by previous owners.

Turners Auctions, which specialises in motor vehicle auctions, was spun off from Turners & Growers, 46-percent owned by GPG.

The company will use the money raised to expand the business, which currently has operating revenue of $60 million. Turners planned to build a super auction centre in Christchurch, along with several information technology projects and working capital requirements.

Turners & Growers' planned float, to raise up to $100 million, is likely to take place by March 2003.

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