Brierley pockets Hardie profit

By Phil Boeyen, ShareChat Business News Editor

Tuesday 22nd May 2001

Brierley Investments (NZSE: BRY) is set to post a profit this financial year after realising a premium of A$234 million over book value on the sale of its holding in Australian company James Hardie.

The 29% stake in the Australian building materials company was on Brierley's books at $333 million and the company received a total of A$567 million for the holding.

Brierley had 119 million shares and has sold out at $4.75 a share. The holding represented 37% of Brierley's net tangible assets as at the end of June last year.

BRY says the sale of the shares will realise significant value for its shareholders and is consistent with its primary objectives as an active investment management company.

At its interim results announced in March Brierley said it did not expect to make a profit this financial year, partly because of equity accounting for extraordinary and abnormal charges by James Hardie.

However the company now says as a result of the sale of the shares it anticipates the current year will be in the black.

CEO, Greg Terry, says proceeds of the sale will be applied for general corporate purposes including, but not limited to, repayment of debt and making new investments.

Brierley recently sold its shares in Hastings-based food company Cedenco for a premium of $3.9 million over the book value of $7.57 million.

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