Australians now control TNC

Press, 7 February 1986, Page 8

Australians now control TNC

The Australians who bought into Transport North Canterbury Holdings, Ltd, last year, have now taken control.

Newmans Group, Ltd, announced yesterday that it has sold its 20 per cent holding in the Rangiorabased Transport North Canterbury for SI.3M to the Australians. This makes TNC a subsidiary of the Australian investment company, Van Berg Holdings, Ltd, through the firm’s New Zealand arm, Southern Cross Enterprises. The Australians have 58 per cent of TNC. Under its new chairman, Mr lan Langford, of Rangiora, TNC has been restructuring. It has 40 staff fewer than two years ago, and has been selling trucks.

This month it should be back in profit, Mr Langford said last evening. This has been achieved in what some are saying is the worst year for country carriers for a quarter of a century.

Van Berg is the invest-

ment arm of Mr Paul Petersen, of Sydney, who owns a construction company. His associates in TNC are Mr Warren Duncan, of Sydney, a chartered accountant, and Mr Charles O’Neil, a Sydney businessman.

The Australians have interests at Queenstown, and have said they are looking for other investment opportunities in the South Island. There have been suggestions that they might use TNC as a holding company for interests in Australia, which may offer them tax advantages. Earlier last year, TNC bought about SI.7M worth of trucks. Some of the 40 vehicles sold or awaiting sale have been replaced; others are redundant because of more efficient use of plant Mr Langford said the firm had sold about SI.IM worth of assets which were not required. The sale to Southern Cross Enterprises has been announced shortly after the Commerce Com-

mission and the Overseas Investment Commission gave approval for Southern to take over TNC. The Newmans representatives, Mr Robbie Dyce and Mr Peter Arnmundsden, resigned from the TNC board a few weeks ago. Newmans said it has sold its total TNC holding of 478,965 shares for 270 c each. It had obtained the shareholding at 250 c each last July in consideration of the purchase by TNC of Service Transport, Ltd. The negotiated price compares with the 350 c the shares attracted when they were last traded on January 7.

The sale came after statements by Southern Cross that it intended to expand TNC’s operations into areas of possible future conflict with Newmans, Newmans said. In December, Southern Cross predicted TNC’s profit in the year to September would reach SI.2M after tax, despite being only $133,000 last year.