Company News DALCETY AND CO. LTD.

Press, Volume XCVIII, Issue 28819, 13 February 1959, Page 12

Company News DALCETY AND CO. LTD.

Capital Increase Proposed

(N.Z. Press Association—Copyright) LONDON, February 11. The directors of Dalgety and Company, Ltd., intend to raise a further £6.2m capital. Approximately £3m will be in debenture stock to be offered to holders of the preference and ordinary shares and of existing debenture stocks in the company, and approximately £2m will be in a rights issue of ordinary shares. Later approximately, £l.2m sterling secured notes will be offered for subscription exclusively in Australia, according to a company press release today. Three-for-eight Offer

The ordinary shares will be offered in the proportion of three for eight at 24s sterling a share. Profits for the current year will be substantially down owing to the recent severe Australian drought and lower wool prices. However, they should justify a total dividend for the year to June 30, 1959, of 7 per cent., tax free, of which an interim 3 per cent, will be paid on existing capital and a final dividend of 4 per cent, on increased capital. Last year 13$ per cent., less tax. was paid. The proposal to pay dividends on a tax free basis is a result of qualification as an overseas trading corporation. GRIFFITHS BROS. LTD. Directors Reject Offer The directors of Griffiths Brothers, Ltd., tea, coffee and cocoa merchants, have turned down an offer for the company’s ordinary share capital. The name of the bidder and nature of the offer are not disclosed.

In the directors’ opinion, the offer “is considerably below the true share value” and acceptance would not, in any case, be in the best interest of shareholders. The directors have informed the offering party that they are not prepared to accept the terms of their own holdings, nor to recommend acceptance to shareholders generally. Paid capital of Griffiths Bros, is £321,758, including £150,000 7 per cent, preference. Net tangible assets at last June 30 were equal to 22s 5d a 10s ordinary share.

Earning rate last year was 23.3 per cent, on average ordinary capital, after deducting £10,500 preference charge. Unchanged 15 per cent ordinary dividend, including 7 per cent, bonus, absorbed £lB,lll of the steady £40,645 consolidated profit. -A 2-fpr-5 par issue late in the year did not rank for dividend or bonus. Latest dealings in ordinary shares were written-.last week on the Sydney market at 21s 6d.

Dominion Investment.—D.l.B.A., in confirming the interim dividend of 3$ per cent., advise the board’s intention to equate the interim and final dividends on the basis of last year’s total dividend of 7 per cent, this being the purpose of the $ per cent, increase on last year’s interim dividend.— (P.A.)

Feltex Australia.—lnterim dividend 5 per cent, payable April 1. ex dividend March 3.—(P.A.) Lombard Australia.—Preference dividend 3$ per cent., ordinary 5 per cent, payable April 1, ex dividend March 2.—(P.A.) Ross and Glendining.—lnterim dividend 2 per cent., payable March 13, ex dividend February 26.—(P.A.)