By NZPA
|
Wednesday 12th February 2003 |
Text too small? |
Mr Gould, chief executive of rural services firm Pyne Gould Guinness and chairman of Designer Textiles, snapped up 10.33 percent or 3.31 million shares of the plastics manufacturer on market yesterday.
JB Were, which was acting for Mr Gould, said it was making a stand in the market yesterday morning for up to 19.9 percent of the company -- the maximum allowed without making a full takeover offer -- at $1.45 a share.
Another buyer, quickly revealed as former Air New Zealand chairman Sir Selwyn Cushing, immediately began buying at $1.46 through broker ABN Amro Craigs.
Mr Gould said his company Gould Holdings, which includes former Wilson & Horton chairman John Maasland as director, was not currently looking to increase its stake.
"All I've got to say about it, is it's a long-term investment."
Sir Selwyn's purchase of 7.57 percent of Vertex after a tussle among bidders pushed the troubled plastics maker's share price up almost 9 percent yesterday. The shares gained a further 7 percent to close at $1.55.
Mr Gould has proved a canny investor in textiles business Designer Textiles, which was the best performer on the New Zealand Stock Exchange last year with its 169 percent rise in share price.
Since Mr Gould took control of the Designer Textiles about two years ago, the share price has jumped from 20c to $1.14 yesterday.
Forsyth Barr Frater Williams head of research John Cairns said Mr Gould had been able to turn around Designer Textiles, "which superficially wouldn't appear to be the most attractive area to be in".
However, Vertex, which had already been extensively restructured, was a more mature business than Designer Textiles.
"It probably comes down to the disappointment in performance relative to the prospectus forecast, so the price has been hammered and you could view it as an opportunity to buy something which he thinks is undervalued," Mr Cairns said.
"At the end of the day, its core business is in plastic packaging, which is an intensely competitive, low margin business."
Sir Selwyn, having upped his stake to 7.57 percent by the end of the day, was undaunted by the prospect of a rival suitor.
Sir Selwyn's 2.43 million shares -- held by H&G Holdings, a company owned by Sir Selwyn and his son David Cushing -- has been built up since September 13 last year.
He began building up his stake after the fall in price.
Vertex shares listed at $2.05 last July but fell sharply to $1.10 in September after a profit warning. That warning, coming so soon after listing, is the subject of an ongoing Securities Commission investigation.
Vertex emerged from Carter Holt's plastics packaging business. It employs over 500 staff and its most recognisable products include containers for Tip Top brand ice cream and Fresh 'N Fruity yoghurt.
The company also makes recycling bins and exports animal health applicators.
No comments yet
