Omnicorp has sold stake in Endeavour

Press, 14 February 1986, Page 10

Omnicorp has sold stake in Endeavour

Omnicorp holdings, Ltd, has sold its stake in Endeavour Services Corporation, Ltd, to Young Nick Holdings, Ltd, ending the scrap over who would be controlling the Auckland linen supply and safety products group. Young Nick, the vehicle for a management buyout of Endeavour by the Plowman family interests, announced on Wednesday that it had received acceptances for 93 per cent of Endeavour’s shares, which was a clear indication that Omnicorp had sold its interest of about 20 per cent. Omnicorp’s executive director, Dr Ray Thomson, said yesterday that the investment company had held about 6M shares in Endeavour, and that Young Nick’s offer of 175 c a share had been accepted. He would not comment on whether Omnicorp had made a profit or a loss on its investments. The buying of the Endeavour stake had tied up funds and management time for a couple of months, but Omnicorp was now free to concentrate on other things, he said. The company had received a lot of calls from shareholders wanting to know what Omnicorp was going to do now. Dr Thomson said that they could expect to find this out in the next couple of months. He would not comment on Australian media reports that Omnicorp had bought a stake in Bridge Oil, Ltd, the Australian oil explorer. Mr Neal Plowman, the managing director of both Endeavour and Young Nick, 'said yesterday that the holding company had received 'between 18 per cent and 19

per cent of Omnicorp’s Endeavour stake, and expected the remaining shares soon. Although Young Nick could compulsorily acquire the remaining Endeavour shares from shareholders It preferred to extend the offer until February 21, he said. The Plowman family interests already held 55 per cent of Endeavour’s capital when the Young Nick bid was launched In November at 155 c a share (cum dividend) for the rest of the capital. This offer was increased 10c a share early in December, and the independent Endeavour directors dropped their "don’t sell” advice to shareholders. Omnicorp countered with a 185 ex dividend offer late in December, and announced , early in January that it held ■ 19.9 per cent of Endeavour and was seeking Commerce Commission approval to buy all the shares. But by the time the commission’s approval came through Young Nick already had a clear controlling interest, and the independent , Endeavour directors still re- . commend the Young Nick bid because they considered that Omnicorp was unlikely to reach its unconditional limit of 91 per cent in Endeavour shares. ■ ’ Young Nick made it clear that it would not be increasing its offer for the shares that Omnicorp held, and Omnicorp withdrew its take-over offer in late January.