Brierley Investments - Re Business Plan

RNS No 1973n
BRIERLEY INVESTMENTS LIMITED
23 April 1999


BRIERLEY INVESTMENTS LIMITED BUSINESS PLAN

1. Investment Philosophy and Strategy

BIL's primary role will be that of an active investor with strategic
shareholdings and active management aimed at extracting and maximising
shareholder value. The Company will also make portfolio equity investments where
it believes returns in excess of market benchmarks can be achieved.

The criteria for new investments will be:

*    BIL will undertake investments in New Zealand, Australia, the United
     Kingdom, Europe and Asia.

*    Investments will range in size between $200 million and $1 billion.

*    BIL will seek a controlling interest in target companies, subject to
     prevailing regulatory regimes.

*    Target companies will have established business operations.

Given this investment criteria, and the prudent funding policy adopted by the
Board, BIL will form strategic alliances with other investment Institutions to
co-invest in target companies so as to be able to fully exploit investment
opportunities. This policy will empower BIL to have maximum financial
flexibility in identifying and making new investments.

In addition to this core business, BIL will deploy funds for the accumulation
and trading of shareholdings in listed companies where the Company believes it
can exploit situational opportunities.

Sir Selwyn said, "The Board has developed some simple guidelines for the
management team.

"Our aim is to focus on fewer, larger investments, where we have a significant
interest and are able to play an active role in adding value to these
businesses.

"We will participate in markets where our knowledge base provides a competitive
advantage and where there is depth of investment opportunities.

"We will not invest in unproven, start-up operations, or in situations where
only time will contribute to value growth "

2.    Rothschild Joint Venture

In order to pursue opportunities in Asia, BIL has entered into a Memorandum of
Understanding with Asia Recovery Fund, sponsored by Rothschild Inc. to form an
equally owned joint venture company to invest in companies, particularly those
undergoing restructuring and based in China, Hong Kong, Taiwan and Southeast
Asia. BIL and Rothschild will jointly manage this Fund, to be capitalised
initially at US$200 million. The objective is to increase this fund size to
about US$1 billion by raising substantial additional co-investment capital from
other investors.

The Fund's investment philosophy will be consistent with BIL's philosophy and
strategy. It will be positioned as a value investor seeking to play an active
role at the shareholding and operational levels.

BIL will realise value by way of management fees and performance related
rewards and through capital growth from its initial investment in the Fund.

Details of the joint venture will be disclosed as soon as they are finalised.
This is expected to be within the next two months.

Sir Selwyn said. "This is a unique partnership that combines the knowledge and
sourcing skills of BIL's major shareholders - Camerlin Group and the Singaporean
Government - with the well known international restructuring skills of
Rothschild. As the joint venture attracts substantial amounts of additional
capital it will provide a significant platform for investment activities above
that which BIL itself can commit to the region."

Wilbur L. Ross, Jr, Executive Managing Director of Rothschild will serve as
Chairman of the joint venture.

3.    Shareholder Distribution Policy

(i)   Dividend Policy

BIL will pursue a dividend policy that balances the need to pay shareholders a
dividend against the requirement to conserve cash for growth and continue to
operate within prudent financial policies. It is envisaged that a dividend will
be paid annually.

(ii)  Share Buy-Back

The Board recognises that the current share price does not reflect fair value.
The Board will provide more details on a buy back programme as soon as they are
available.

4.    Appointment of Chief Executive Officer

BIL has appointed Korn-Ferry International, an International executive search
firm, to help the Board recruit a Chief Executive Officer.

Sir Selwyn said, "BIL has a portfolio of more than $3.5 billion investments
under management, in over 30 companies around the world. We have an investment
philosophy that requires active management, a secure financial position and a 
portfolio of strategically attractive assets. In addition, we have entered into
a joint venture to co-manage about US$1 billion of investment funds. These
credentials should enable us to secure a world class chief executive, and other
executives, to implement the Board's business plan and create value for
shareholders."


5. Location of Head Office

Given BIL's investment portolio where over 60% of the group's assets are located
outside New Zealand, as well as an investment strategy targeting a number of
countries, the Board feels that it would be desirable to consider to move the
Head Office to an international centre where it can more effectively operate as
a global company.  Bankers Trust has been retained to advise the Board on this
matter.

The Board will take into account such issues as anticipated acquisition
opportunities, shareholder and Company taxation implications, access to capital
markets and key personnel recruitment and retention. In this respect, Singapore
is considered an appropriate location.

The Board anticipates that the location of BIL's head office may also impact on
its home listing and location of incorporation, and these issues will require
detailed review. Regardless of the outcome, BIL will remain listed on the New
Zealand and Australian stock exchanges.

This review is expected to be completed within the next six months.


M B Horton
Company Secretary
23 April 1999



                            BIL Announces Business Plan

Brierley Investments Limited (BIL) today announced the details of a long term
business plan aimed at delivering improved performance to shareholders.

The business plan follows the announcement on 8 April of a US$600 million
refinancing package which completes the Group's financial restructuring.

The major initiatives of the business plan include:

*    A joint venture fund to pursue opportunities in Asia, BIL has entered into
     a Memorandum of Understanding with Asia Recovery Fund, sponsored by
     Rothschiid Inc., to form an equally owned joint venture company to invest
     in companies, particularly those undergoing restructuring and based in
     China, Hong Kong, Taiwan and Southeast Asia. BIL and Rothschild will
     jointly manage this Fund, to be capitalised initially at US$200 million.
     The objective is to increase this fund size to about US$1 billion by
     raising substantial additional co-investment capital from other investors.

*    resumption of BIL's normal active investment business focusing on
     companies in Australia, New Zealand, the United Kingdom, Europe and Asia;

*    implementation of a new shareholder distribution policy including a share
     buyback programme;

*    the global recruitment of a Chief Executive Officer; and,

*    reviewing BIL's head office location.

Executive Chairman, Sir Selwyn Cushing said, "While the preceding twelve months
have been difficult for BIL shareholders, much has been achieved in the
last six months in reshaping the Group's operations.

In addition, we have dedicated teams in place to address a number of
underperforming investments and those no longer meeting BIL's investment
criteria.

"We now have long term banking arrangements in place with a stable financial
structure, a business strategy which the Board is confident will create
shareholder value, and supportive major shareholders working together to move
BIL forward.

"As BIL is now standing on a firm foundation, the Board and management can
focus on implementing the Group's business plan. Our immediate priorities are to
finalise the joint venture with Rothschild Inc., recruit a new Chief Executive
Officer, put in place the shareholder distribution policy and review the
location of BIL's head office.

"Co-investment will be a feature of the Company in the future. We have
co-invested successfully in the past in companies such as Carter Holt and Sky
City and as the Rothschild joint venture demonstrates, we plan to be more
aggressive in the future in bringing additional capital to situations that will
allow BIL to exploit its full range of investment opportunities."

For further information please contact:

Mr Mike Drogemuller
Group Communications Manager
Brierley Investments Limited
Tel. [phone]

Mr Wilbur L. Ross, Jr
Executive Managing Director
Rothschild Inc.
Tel. [phone]

END

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