Rubicon foray surprise for GPG, shareholders

By PAUL PANCKHURST

Biotech and forestry company Rubicon - self-described as focused on emerging technologies - last year quietly invested $1.6 million in a new venture: treating the mentally ill.

The unexpected foray into healthcare was not disclosed to shareholders, although the listed company's report for the six months to September 30 alluded to the dollar amount.

One of Rubicon's biggest shareholders, Guinness Peat Group, yesterday said it was difficult to see the investment's relevance to Rubicon's prior investments, which include a significant stake in Fletcher Challenge Forests.

Sydney-based GPG director Gary Weiss described the investment as "a far cry from other investments that Rubicon had publicly revealed".

"I must say that we were surprised to see the investment when we got involved with Rubicon."

An informed source claimed Weiss and GPG's Tony Gibbs argued unsuccessfully with fellow board members for the investment to be more fully disclosed in the company's interim report.

The investment is tiny in the context of a $190 million company, so disclosure was not mandatory.

However, it seems to be in contrast with Rubicon's stated role of "investing in the commercialisation of emerging technologies", and another Rubicon shareholder said yesterday: "It would be nice if they actually told us."

A Companies Office search shows Rubicon used a wholly owned company, Healthcare Investments, to invest in Health Innovations Holdings, the company behind a fledgling network of psychological treatment clinics using the name Linkages.

Rubicon chief executive Luke Moriarty did not want to comment on the venture yesterday.

Health Innovations chief financial officer Matthew Kenny said the company worked with general practitioners' organisations and did not want a public profile.

He feared publicity would hurt the relationships with GPs.

Health Innovations and Rubicon have something in common - both have connections with the former Fletcher Challenge empire.

Rubicon was the mixed bag of assets spun out of Fletcher Challenge.

Companies Office files list Air New Zealand's chief financial officer, Shane Warbrick - a former group investment director of Fletcher Challenge - as a shareholder in, and former director of, Health Innovations.