Profile on Cobex

Press, 13 February 1986, Page 26

Profile on Cobex

PA Auckland Cobex Corporation Ltd, which aims to be listed soon, expects to build a forecasted net profit of $142,000 in the two months to March 31 into one of $1,066,000 in the 1987 March year and one of SI.3M in 1988. The projections of the equity investment, property development and property owning company are contained in a profile of the corporation which is listing through the renamed Stevens Corporation.

The first forecast dividend is an interim for the 1987 year.

Chief shareholders in Cobex will be Bexley Group, Ltd, (38 per cent) and Coburg, a group of 16 Auckland businessmen (13 per cent). The remaining 49 per cent will be held by the public, the Auckland broker Paine Belcher and partners having completed the placement of 750,000 shares at 300 c a 100 c share and remaining shares being sold to

parties friendly to Bexley and Coburg. Issued capital consists of $2,288,000 in ordinary shares, with $40,000 in six per cent cumulative preference shares plus 1,144,000 transferable options exercisable at 300 c and 150,000 directors’ options exercisable at 350 c. The options are exercisable at March 31.

Shareholders’ funds are $6,434,000. Total assets are expected to Increase during the year to about SI2M with a shareholders’ equity ratio of about 46.

It is proposed Cobex will acquire and initially hold 53 per cent of Invesco Group, Ltd, at a cost of about $6.7M. Invesco’s interests include 19.9 per cent of Williams Property Holdings, Ltd, 62 per cent of Intertasman N.Z. Group, Ltd, 19.9 per cent of Consolidated Enterprises, Ltd, and 100 per cent of Radiator Industries Ltd.

The profile describes the involvement with Williams and Intertasman as particularly relevant to the philo-

sophy. Invesco, because of pro-perty-related investments of Cobex and associations, provides an ideal vehicle through which to pursue further profitable investment opportunites in both New Zealand and overseas in these industries, the profile says. Although Bexley Developments has been a successful property developer for the last 10 years, particularly in South Auckland, the profile says Cobex will have the capacity to develop selective larger-scale developments.

It will not contest central city redevelopments in Auckland and Wellington but concentrate on projects of between S2M and $7.5M, particularly in relatively new urban areas such as Manukau City and Lower Hutt.

Cobex intends to retain about 20 per cent of its development projects as medium to long-term investments. It is buying a threestorey development project in Manukau for S2M.