Hubbard and Active Equities in bid for Hirequip

Timaru millionaire Allan Hubbard and Active Equities announced they are standing in the market for 17 million Hirequip New Zealand shares, 14.5 per cent of the company, at 93 cents each.

The shares closed yesterday at 81c.

Active Equities is an investment vehicle set up by ex Brierley Investment executives Bruce Hancox, Paul Collins and Patsy Reddy. Hirequip is chaired by Graeme Wong, who is himself an ex-Brierley man. He owns 7 per cent of the company.

Executing broker Forsyth Barr said the joint venture, Willpro Holdings, had bought 5.6 per cent of the company already and was seeking 8.9 per cent on market. If the stand is successful, Willpro would hold 19.9 per cent of Hirequip.

Forsyth Barr said it picked up 6.57 million shares overnight "from various parties" at prices between 90c and 93c.

The stand is open until 5pm today but could be extended.

No price escalation condition is being offered for shares bought in the market stand.

Mr Hubbard, a well known philanthropist, controls South Canterbury Finance. This month it posted a pre-tax, half year net profit of $18.2 million and forecast a full year net profit of $30.2m.

Last year the company, which has assets of more than $1.1 billion, pulled out of a public float and share market listing.

Mr Hubbard, 77, bought out his long term partner in South Canterbury Finance, Humphry Rolleston, in August last year.

The low-profile Timaru businessman is one of the South Island's wealthiest men, with an estimated worth of $400m. He has investments across a range of industries, but lives a humble existence, still driving about in an ancient VW Beetle.

The Dunedin-founded and based Hirequip said in October it was not ripe for takeover despite its share price languishing.

Hirequip was formed from the hire equipment business started by Stuart McKinlay, of Dunedin, and the former Southern Capital investment assets of the late mult-millionaire Howard Paterson.

It listed in May 1997 for $1 per share, with its shares having an all-time high of $1.14, but following its August full-year report they have steadily slipped back.

In late-August, Hirequip reported a $2.6 million drop in its annual operating surplus before tax, but core operating earnings remained strong.

The McKinlay Famrily Trust still owns 25 per cent.

Hirequip shares rose 9c to 90c in early trading today. The 6.5m shares reported as traded probably related to those acquired by Forsyth Barr overnight.

- NZPA