Nylex under ASX query28jun05MELBOURNE-based manufacturer Nylex...

Nylex under ASX query

28jun05

MELBOURNE-based manufacturer Nylex last night rejected suggestions that it had provided Citigroup analysts an exclusive briefing on the company's earnings outlook.

Responding to a list of questions from the ASX, Nylex said in a statement that the company's managing director, Glen Casey, had delivered a presentation to Citigroup on June 23.
During the presentation, Mr Casey was asked whether profit before interest, tax and appreciation for the 2006 financial year would be in the vicinity of $46 million.

According to the Nylex statement, Mr Casey was only prepared to say that EBIT for the 2005 financial year would be in the range of $33 million to $35 million.

It is believed that a Citigroup-owned nominee arm, Citicorp Nominees, may have sold its holding of 13.87 million shares in the company following the presentation.









The ASX queried the company on Friday when the share price fell from 28.5 to 25 on high turnover.

More than 28 million shares changed hands on that day, a record for the stock this year.

"It is noted that Citicorp Nominees Pty Ltd holds 13.87 million shares in Nylex and the company assumes that these have been divested," the Nylex statement said.

"The company assumes that this possible large divestment by Citicorp Nominees Pty Ltd has led to other divestments."

The Nylex statement did not explain whether the presentation made to Citigroup was also made to other institutions.

However, Nylex general counsel and company secretary, Mr Tony Serong, last night denied that it was an exclusive presentation.

"It was not an exclusive briefing," he said.

In the last three years Nylex has struggled to overcome debt problems which crippled its balance sheet.

A recovery plan was implemented in 2002 after prominent businessman, Kerry Stokes, became the company's largest shareholder.

Nylex' closed at 26c yesterday.