TAKE-OVER OF WHAKATANE

Press, Volume C, Issue 29554, 1 July 1961, Page 16

TAKE-OVER OF WHAKATANE

Preference Share Offer (N.Z. Press Association) AUCKLAND, June 30. Holders of . preference shares in Whakatane Board Mills, Ltd., are to be offered five preference shares in New Zealand Forest Products, Ltd., for every four Whakatane preference shares held. This was announced today by Sir David Henry, chairman of Forest Products. Forest Products took over Whakatane Board Mills this year, in a bid announced late last year. The offer was two Forest Products ordinary shares for every Whakatane ordinary share. The Whakatane preference shares are £1 5 per cent, shares, participating to 7 per cent. The Forest Products preference shares are 5} per cent, cumulative. There are 600,000 Whakatane preference shares. The Forest Products preference shares have sold at 20s this week. Sir David Henry said this offer would give Whakatane preference shareholders a slightly higher return. More than 90 per cent, of the holders of ordinary Whakatane shares had so far accepted the take-over offer. Forest Products would now undertake steps under the Companies Act to acquire the balance. Dividend on the Forest Products shares issued to Whakatane shareholders would amount to £lBO.OOO this year. This and the preference dividend were easily covered by Whakatane’s earnings, Sir David Henry said. Consolidated accounts would be presented next year.