Brierley Investments - Chairman Statement
December 07 1998 - 3:43AM
UK Regulatory
RNS No 6700p
BRIERLEY INVESTMENTS LIMITED
4th December 1998
The Executive Chairman of Brierley Investments Limited (BIL), Mr Selwyn Cushing,
announces the following policy matters which have been unanimously agreed to by
the Board:
1. Reduction of Senior Debt
The Board is committed to achieving a sound leveraged Balance Sheet and
will seek to finalise an optimal financial package with all senior lenders.
The proceeds from the current asset sales programme will be utilised to
reduce senior debt by at least $1 billion as of 30 June 1999.
2. Enhancement of Value
The Board intends to focus on enhancing the value of BIL's core assets and
the divestment of non-core assets. The Board believes that through the
trimming and restructuring of BIL's asset base, value can be created for
shareholders.
3. Chief Executive
The Board considers that substantial work needs to be done to restore
stability and strength to the Company. To ensure this critical process is
well managed, the Board has requested Selwyn Cushing to take charge
personally. He will concurrently assume the role of Chief Executive Officer
in March 1999 following his retirement as chairman of Electricity Corporation
of New Zealand Limited. Mr Cushing will see through the reshaping phase to
position the Company for the future. The Board will then be in a better
position to appoint a suitable candidate to fulfil the requirements for the
post of Chief Executive Officer.
4. Management of Investments
The Board will take an active involvement on the boards of its major
investments and will seek representation on these boards consistent with its
level of shareholding.
5. Business and Operating Policies
The Board is reviewing the business and operating Policies of BIL and is in
the course of making changes to bring them more in line to meet the changes
taking place in reshaping the group.
6. Reduction in Overheads
Management is making progress in the reduction of overheads and it is
expected that they will be reduced substantially. A consolidation of the
Company's offices can be expected.
7. Distribution Policy
The Board is not able to define a dividend policy at this stage until a new
funding package has been worked out with the senior lenders. However, the
Board is conscious of shareholders' expectations and will review a dividend
payment for the financial year in line with the generation of funds from
future asset disposals. A dividend policy will be considered as an overall
package when the Company has determined its strategic vision and completed
its negotiation with the senior lenders on a new financial arrangement.
At the same time the Board will also consider whether a share buyback
programme is appropriate.
8. Corporate Governance
A comprehensive code on corporate governance has been completed.
Selwyn Cushing
Executive Chairman
4 December 1998
END
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