Nbh Still Seeking Pasminco Buyers
The Age
Tuesday June 16, 1992
North Broken Hill Peko is still keen to sell down its holding in Pasminco as soon as possible despite the deferral of the sale in April, according to NBH's managing director, Mr Peter Wade.
Mr Wade said yesterday that NBH's advisers, Ord Minnett Securities in Australia and Credit Suisse First Boston in London, were continuing to canvass potential buyers for the 40 per cent stake worth about $400 million.
However, the NBH boss said he would be surprised if the stake was sold before the end of the 30 June financial year despite renewed market speculation a sale was imminent.
NBH and CRA announced on 27 February that the two companies had decided to reduce their combined holding in Pasminco to just under 40 per cent from 80.6 per cent after NBH gave notice it wanted to halve its holding.
The companies have each held 40.3 per cent of Pasminco since it was formed in 1988 to absorb most of their base metals assets.
NBH wants to reduce its holding so it can redeploy the funds locked up in Pasminco in new projects, most notably its 50 per cent Kanowna Belle gold joint venture with Delta Gold NL which is about to be developed near Kalgoorlie.
CRA decided it would reduce its stake by an equal amount, as it had no wish to become the major shareholder in Pasminco and be forced to consolidate the base metals group's debt in its own accounts as would be required under new accountancy standards.
Mr Wade said that after the February announcement it became obvious there were two markets for the stock: institutions and corporate buyers. The institutions had neither the capacity nor the desire to absorb 40 per cent of Pasminco, leaving a corporates as the only potential buyers.
These are almost certainly all international companies. Japanese industrial conglomerates are understood to be at the top of the list of potential buyers although a number of European metal groups have also expressed interest.
Mr Wade said one Japanese company had been in almost daily contact with his company's advisers over the proposed sale but he declined to name names.
Analysts suggest Japan's Mitsui Mining and Smelting Company is the hot favourite to take up the stake, as this company has already expressed interest in increasing its exposure to the Australian lead and zinc industry.
Both sellers now stand to get a better price, as Pasminco's share price has recovered to $1.48 on the back of strengthening zinc prices.
© 1992 The Age
Share This