COMMERCIAL BIG BUSINESS DEAL

Press, Volume XCI, Issue 27632, 13 April 1955, Page 17

COMMERCIAL BIG BUSINESS DEAL

AUSTRALIAN COMPANY CHANGES

COX BROS. TO TAKE OVER FOY AND GIBSON

The directors of Foy and Gibson, Ltd., Melbourne, have accepted an offer for the ordinary shares from Cox Brothers (Australia), Ltd., of Melbourne. The terms of the offer accepted are four ordinary Cox Brothers 5s shares for each £LFoy and Gibson ordinary share, together with a cash payment of 25s for each share. Based on last Wednesday’s price of 7s (Australian currency) a share for Cox Brothers shares, the offer is equal to 53s a share. The Cox Brothers offer is equal to a total transaction of £4,555,350, involving 6,876,000 5s shares in Cox Brothers and £2,146,750 in cash.

The offer is conditional on acceptance by 51 per cent, of Foy and Gibson’s ordinary shareholders. Foy and Gibson’s directors have recommended acceptance of the offer. It is understood that Cox Brothers will form a-property holding company to finance the cash portion of the deal, and that freeholds up to the value of £1,500.000 now held by Foy and Gibson may be sold off.

This deal, which is the largest of its kind in Australian business history, brings to a close a series of negotiations which began in mid-Februarv. A group of companies comprising G. J. Coles, Myer Emporium, Cox Brothers and Rockman’s. Showrooms, opened the bidding. G. J. Coles later made independent offers—-all of which were rejected—and further offers were made by the huge United States company, Sears. Roebuck, in conjunction with Waltons, of Sydnev and bv p syndicate headed bv Mr Stanley Korman. The independent entry of Co-*’ Brothers into the bidding came as r surprise. Commenting on the transaction, the chairman and managing director of Cox Brothers, Sir Frank Richardson said no Cash issue was contemplated by his He emphasised that no other company was associated with Cox Brothers in the offer. The whole of the Foy and Gibson business, excluding the Eacley Mills subsidiary, which is not included in the deal, would trade as a subsidiary of Cox Brothers under its own name. The .deal will almost double the paid capital of Cox Brothers to £3.884.490, including £290.490 in preference capital. COMPANY NEWS Y M.K. Manufacturers.—After transferring £2835 more to taxation reserve at £11,368, M.K. Manufacturers, Ltd., Auckland, earned a net profit of £12,491 for the year ended December 31. a reduction of £327., The pro' -1 before taxation reservations was £2508 higher than a year before, at £23,859. Depreciation provision is again unspecified. In spite of an increase of £17,500 in paid capita] resulting from the 28 for 100 issue of 5s shares at a premium of 3S last September, the dividend rate has been maintained at 12J per cent. The payment requires £lO,OOO, J 67812 ln 1953 - The sum of £lOOO ( £5OOO in 1953) has been added to general reserve, increasing it to £51,000, leaving £1491 of the net profit to increase the carry to £10,301. ine balance-sheet shows a reduction of £14,960 to £62,494 in bank overdraft. The value of stocks, less an unchanged stock valuation reserve at £lB,OOO, was £13,368 higher at £197.766.—(P.A.) Argentine Investment Problems—lt would seem clear that if the Argentine people are to secure the capital necessary for the future development of the Republic, some recognition and some better terms must be acorded to the old capital investment in the country, said the chairman of the New Zealand and River Plate Land Mortgage Company. Ltd.. Sir Denys Lowson, at the annual meeting in London. It had been impossible, he said, to secure any peso remittances from the Argentine in the past year, either in respect of past profits or In respect of mortgages which had matured. Although at the moment it was difficult to discern any definite improvement, it would certainly appear that the urgent need for new capital investment was fully appreciated by the Argentine authorities. Bitumen and Oil New Issues.—Bitumen and Oil Refineries (Australia), Ltd., will make the bonus issue of 250,000 £1 ordinary shares in the ratio of one for every five held on May 4. Shareholders will also be offered 500,000 £1 ordinary shares in the ratio of two for five held on May 4. The cash issue shares will be payable in full on application by June 6. Nominal capital -is to be raised from £2.000,000 to £5,000,000.

Wanganui Company Sold.—Goldingham and Beckett (Wanganui), Ltd., general merchants and wine and spirit merchants, advise the sale of its property and undertaking to the New Zealand Loan and Mercantile Agency Company, Ltd., and to its subsidiary, N.Z.L. Properties. Ltd., for £30,000, plus liquor stocks at valuation. Registered in 1953, the company has an authorised and subscribed capital of £45,000 in 20,000 preference shares and 25,000 ordinary shares of £1 each. N.Z. Investment Year.—Net profit of the New Zealand Investment Mortgage and Deposit Company, Ltd., increased by £336 to £3258 in the year ended March 31 after 'provision of £5lO more for taxation at £2610. Surplus tax of £339 has been written back into the accounts. Dividend is unchanged at 6 per cent, requiring £2130, and £lOOO has been added to reserve, increasing it to £27.000. The carry-forward is increased by £467 to £4468.

Phoenix Assurance.—Fi4ld Marshal Earl Alexander has been appointed to the board of directors of the Phoenix Assurance Company, Limited.

“Odd Lots” Trading.—The Sydney Stock Exchange has appointed from among its member firms an ‘odd lots specialist" who will start trading in odd lots from Monday. April 18. The chairman of the Sydney Exchange, Mf Ralph W. King, said that the object was to provide facilities for the more rapid completion of orders in odd lots of shares, stock units, options, rights, and unsecured notes. Under conditions which had hitherto obtained, considerable delay had frequently occurred where an odd lot was required, or had to be sold. <