Waislitz saves the day on ERG rights issueBy Ian PorterJuly 9,...

Waislitz saves the day on ERG rights issue
By Ian Porter
July 9, 2004

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The emergence yesterday of Alex Waislitz as a sub-underwriter of ticketing company ERG's rights issue insulated the share price from the worst effects of the deep discount proposed for the issue.

That limited the fall at the close to 5¢, at 55¢. They had been a lot lower during a day of tumultuous trading.

Many shareholders reacted negatively to the rights issue, which will require them to take up five new shares for every four they now hold at a price of just 20¢. Their selling had ERG opening at 40¢, and easing to 39¢ in heavy trade, before the optimists started buying.

Many investors were persuaded when they realised Mr Waislitz and his Thorney Holdings were prepared to buy. In all, the buyers snapped up 17.7 million shares, more than four times the average daily volume.

Mr Waislitz, son-in-law of billionaire box maker Dick Pratt, and Thorney have a stellar investment record, and his decision to become one of the sub-underwriters indicates he believes ERG has leading technology and good prospects.

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ERG managing director Allan Sullivan said on Wednesday that the $67 million to be raised would finally give ERG the balance-sheet strength to reassure many of its customers that it will be able to complete any ticketing contract it may be awarded.

The writer holds ERG shares.