Meeting backs Tasman move

By DITA DE BONI

Shareholders have given Lion Nathan the rubber stamp to cross the Tasman in June.

At a sparsely attended special meeting yesterday, shareholders approved a resolution for the company to transfer its incorporation, primary sharemarket listing and head office to Australia.

From June 2, Lion will become subject to Australian Corporation Law, accounting standards and Australian stock exchange costing requirements as a result of moving the primary listing of the company to the ASX.

Two head-office functions will remain in Auckland: management of the group's intranet and key product development.

Chairman Doug Myers said the move was the culmination of an evolving success story, "as driven by the belief more than a decade ago that the New Zealand economy was too small to sustain Lion's future growth objectives."

Mr Myers reassured shareholders that their cash income from investment in Lion Nathan would, in future, be similar to that of the past. He said the board would increase future dividends by more than 20 per cent.

To illustrate the company's commitment to New Zealand, Mr Myers made reference to Lion's acquisition of 19.9 per cent of Montana this week.

But after the meeting, Lion chief executive Gordon Cairns refused to comment further on the company's role in Montana except to say Lion planned to stay at 19.9 per cent.

He said he had not found out until after Lion's stand in the market at 230c that Montana believed the price was too low. He said it was based on internal evaluations and represented "fair value."

He described as speculation the suggestion that he was meeting Montana chairman Peter Masfen this week to discuss Lion's involvement on Montana's board.