Ron Brierley denies 'fast buck’ claims

Press, 24 January 1986, Page 4

Ron Brierley denies 'fast buck’ claims

NZPA-AAP Sydney The Industrial Equity chief, Mr Ron Brierley, yesterday denied assertions that his partial takeover offer for North B.H. was simply to make a “fast buck”. Industrial Equity believed that the plan was positive and credible and designed to benefit shareholders in the long-term. He was commenting on statements by North’s chief executive, Mr Mark Bethwaite, that the bid was simply to break the company up for a quick profit Mr Brierley welcomed proposals by the New South Wales Premier, Mr Neville Wran, to hold discussions between North representatives and his state Government to discuss the company’s future. Mr Wran yesterday expressed concern over the sAust4so million ($607.5 million) bid for 40.3 per cent of N.8.H., announced last week, and consequent plans to divest the company’s marketable assets.

Mr Wran said the takeover raised important questions about the future development and viability of the N.B.H. lead-zinc-

silver mine at Broken Hill and perhaps of the Elura zinc mine in western New South Wales. Mr Brierley said he could understand the concern of Broken Hill residents. His company was concerned also about the future of N.B.H. and its bid and consequent plans for the company were aimed at doing something about it. According to Mr Wran, N.B.H. needs sAust23o million ($310.5 million) in the next five years to develop its mining and mineral processing interests in New South Wales and Tasmania, including the Fitzpatrick lode at Broken Hill and the second stage at Elura. In 1984, the state Government made extensive concessions in royalty and electricity charges to North B.H. and the C.R.A. group in order to ensure the future of the Broken Hill community.

Mr Wran said the N.B.H. concessions were made on the explicit condition that the company would proceed to develop the Fitzpatrick lode and thereby extend the working life of the mine by

many years. Mr Brierley said anybody who was looking at an Investment of that size would only be reassured by the investment potential and past performance of his company. Nonetheless he said he would be very happy to meet Mr Wran and N.B.H. representatives on the matter. Mr Bethwaite said on Wednesday that the company had been negotiating to sell about sAust4so million of assets in a bid to improve the efficency of its core work. “It (the plan) is a little suprising but it’s very pleasing to discover that they too have a rationalisation plan to dispose of the company’s assets to the benefit of the shareholders — it seems we have similar plans but differ on the methods,” he said.

Quizzed on N.B.H.’s assertions that the $2.50. a share offer was undervalued and the possibility of increasing it, Mr Brierley said: “I certainly have not got a closed mind on it but so far there has been little to change my mind,” he said.

N.S.W. Premier, page 12