LAIDLAW LEEDS.

Auckland Star, Volume XLIX, Issue 126, 28 May 1918, Page 2

LAIDLAW LEEDS.

PROPOSED PURCHASE BY FARMERS. A BIG TRANSACTION. APPROVED BY THE UNION. One of the biggest "ousiness deals kiuj-.M! in Auckland has beer approved by the Auckland Farmers" Union Trading Company for the acquisition of the trading business known as Laidlaw Leeds. Negotiations include the taking over of the whole concern—building and stock—and the conversion of the same into n huge co-operative company under the control of the Association. That fcomething of the kind was afoot has been known fur smue weeks past, but nothing could be stated definitely until to-day, when a statement was may to the Farmers" Union Trading Company with a view to getting authority to complete negotiations and authorise a large increase in the capital of the Farmers' Union. The proposed purchase was discussed this morning at the annual meeting of the latter concern. Mr. Boddie, who has been acting-chair-man of the directors for the past six month?, in introducing the matter, said —after referringto the rumour circulated in respect thereto—that he was sorry that he was in an unfortunate position in one respect, in so far as the transaction had not been concluded. However, he would tell them frankly everything be possibly could, short of revealing certain figures until the matter was confirmed. He indicated that the directors were convinced of the fact that the banners' Union Trading Company had not the accommodation at their premises suitable for t'.ie carrying on of their business, and the result would be that they would have to go to considerable expense in altering the premises or erecting new premises of their own. The time was not opportune to build, and it seemed to the direcf.org that when the proposal to purchase Messrs. Laidlaw Leeds. business was put before them it was well worthier consideration. Several meetings of directors had discussed the proposal, nnd the best financial expert opinion was obtained thereon. As far as the land and building were concerned, they Jiad got outside estimates, and these Tallies continued in every way the ideas and prices considered and agreed by the directors. When the fullest information had been got of all sorts, a very full report was submitted to the board of directors. After most exhaustive inquiries, a unanimous resolution was then passed by the board of directors on the terms outlined. Then further negotiations were gone into, the terms of agree, ment safeguarded as much as possible, the company's solicitors also going into the matter. He said +li»t the 'business «f Messrs. Laidlaw Leeds had been fou almost from inrention to be an extremely successful one. It had been "< steady growth up to the present moment. The purchase was being bought purely and simply on the equity «f the property. Stock was valued and put in as an as?et in the ordinary way. The payment -would be practically "wholly preferential shares.

After discussion resolutions were earned providing for increasing the capital from £100.000 to .tG00.0007 makino- an memase of £200.000 ordinary shires and t.300.000 preferential sbares and giving the directors power to issue preferent.al shares. A vote of confidence in the direction of entering into the negotiations for the purchase of tho busi less was passed.