N.Z. PAPER MILLS

Press, Volume XCIX, Issue 29269, 29 July 1960, Page 16

N.Z. PAPER MILLS

Capital Plans Announced

(New Zealand Press Association) DUNEDIN, July 28.

Shareholders of the New Zealand Paper Mills, Ltd., have been advised of an extraordinary .general meeting of the firm in Dunedin on August 26 to vote on a proposal to increase its capital from the present £200,000 to £400,000, and £lOO,OOO of unisued capital. Shareholders were told at the annual meeting in May that further capital is required for an expansion of operations of the Mataura paper mill.

The Fletcher Trust and Investment Company, Ltd., has offered to provide the capital required initially by taking up 100,000 £1 shares of the increased capital at a premium of £1 per share. It is also proposed that before issuing 'new shares for cash, bonus shares on the basis of one for each two shares held should be issued to shareholders on the register on August 31 from a property revaluation reserve of £lOO,OOO. The directors recommend the proposals. The offer of Fletchers would mean “a sum of £200,000 available to the company for the modernisation of existing equipment and the purchase of new plant, coupled with the advantage of having associated with this company one of a group which has great management, technical and financial strengths,” directors advise. Delicensing “The directors consider that this is particularly important at the present time, especially in view of the recent complete delicensing of the industry, and it is clear that the manufacture of paper products will become highly competitive.” A proposed amendment to the articles of the company will reduce the voting strength of Fletchers’ from 100,000 to 10,000, but it is proposed that/ it should have the right to appoint one of the directors—Sir James Fletcher would be the first person to be so appointed.