WELLINGTON INVESTMENT

Press, Volume XCVIII, Issue 28988, 1 September 1959, Page 19

WELLINGTON INVESTMENT

Offer Of 14s 6d A Share

(New Zealana Press Association) WELLINGTON, August 31.

The Phoenix Assurance Co., Ltd., England, has offered to buy all the issued ordinary share capital of the Wellington Investment Trustee and Agency Co., Ltd. The price offered is 14s 6d (N.Z.) for each of the 124,600 £1 shares, paid to 10s.

The terms of the offer permit the payment to Wellington Investment shareholders of a final dividend not exceeding 3J per cent

In a circular letter to share holders Wellington Investment directors say the price offered is much above the market price of 8s to 9s a share and in their opinion bears a just relationship to the balance sheet value of 15s 6d a share.

Directors’ Acceptance

The directors have agreed to accept the offer for their own shares and recommend its acceptance by aIL shareholders. They say that, under the taxation bracket in which the company’s income falls, the rate of dividend it could pay is severely restricted. The higher rate of dividend paid for the past year arose from the sale of properties.

The Phoenix offer will remain open till noon on November 2. It is- subject to acceptance in respect of 90 per cent, of the issued shares or such smaller percentage as Phoenix may decide. Phoenix reserves the right to nominate other persons or corporations as transferees in respect of all or any of the shares purchased.