Investors eye stake in Apple Fields

Friday 3rd August 2001

By Chris Hutching

Apple Fields was yesterday believed to be close to signing a contract with Australian investors who are expected to announce their plans for the listed shell soon.

The shares rose from 13c to 17c early in the week prompting the Stock Exchange to ask why.

Managing director Tom Kain had no knowledge of the price surge until he received the request but said he presumed astute investors had taken note of recent comments about negotiations proceeding.

The main attraction for any new investors is the $50 million available in tax losses.

But the full amount can only be claimed if the shareholding register remains stable.

The dilution of existing holdings may see some of tax loss entitlement reduced.

Mr Kain and family interests hold just under 50%.

Apple Fields has been in receivership mode for the past two years, selling down properties to repay about $70 million in debt.

It retains interests in one significant property development at Yaldhurst, near Christchurch, that is subject to a zoning decision in the next few months to allow residential subdivision.

It is also pursuing a Privy Council appeal against the $13 million mortgagee sale of the Northwood subdivision on the northern fringe of Christchurch. Christchurch-based QC John Fogarty has been joined by Melbourne QC Julian Burnside in pursuing the case and will be paid according to the outcome.

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