ADSTEAM LOOKING TO BRITISH MARKET FOR INVESTMENT
Diversified industrial and investment
group The Adelaide Steamship Co Ltd <ADSA.S> said it was
looking to the British market for future investment in view of
high share prices and interest rates in Australia.
    "Because of lower interest rates and improved economic
statistics, we believe the U.K. At the present time offers
better value and we hold strategic investments in that market,"
it said in a statement.
    Adsteam did not name any British investments but it has
disclosed a stake in Blue Circle Industries Plc <BCIL.L>, last
stated by Adsteam in London at 6.85 pct in late February.
    Adsteam said it was continuing to look for investment
opportunities both in Australia and overseas, but with the
Australian stock market at record levels, opportunities to
acquire companies on reasonable investment criteria were
limited.
    As earlier reported, Adsteam will raise 228.5 mln dlrs for
working capital and investment both in Australia and overseas
through a one-for-five rights issue at 11.50 dlrs a share.
    "We expect to enter 1988 in a highly liquid position and
will be looking to take advantage of investment opportunities
as they arise," it said.
    Nevertheless, Adsteam said it continues to be a large
investor in the Australian market through its equity-accounted
associates and through other major investments.
    "We have enjoyed a very substantial increase in the market
value of our investments over the course of this financial
year, but we are concerned at the economic fundamentals which
persist in Australia, particularly the high interest rates
which currently apply," it said.
    Adsteam also said it had hedged part of its Australian
stock market portfolio in the futures market and had hedged all
foreign currency borrowings.
    Realised losses from futures hedging have been brought to
account as extraordinary items but unrealised gains from
investments significantly exceed realised and unrealised losses
on hedging, Adsteam said.
    In its earlier reported first half ended December 31,
Adsteam posted an extraordinary loss of 20.39 mln dlrs against
a 13.79 mln profit a year earlier.
    Equity-accounted net profit before extraordinaries rose to
75.05 mln dlrs from 55.68 mln a year earlier.
 REUTER
