RIO TINTO MERGER

Press, Volume CI, Issue 29739, 5 February 1962, Page 18

RIO TINTO MERGER

“Board Room Harmony”

(NZ.P.A.-Reuter —Copyripht) LONDON, February 3. Complete harmony seemed to rule in the board rooms of the two far-flung mining groups. Rio Tinto and Consolidated Zinc Corporation which announced merger terms this week, the “Financial Times” reported. The newspaper said tfia-e original link between the two groups was Mr L. B. Robinson, who died last year, so the scheme may well have been simmering for a long time.

The terms were simple enough, said the “Financial Times.” The new name was to be the Rio Tinito-Zinc Corporation, Ltd., Holders of Consolidated Zinc £1 ordinary shares were to receive 58 10s ordinary shares in the new concern for every 20 Consolidated Zinc held and holders of Tinto ordinary 10s stock units would get 41 for 20. Before shareholders could pronounce judgment on the scheme they would have to be told as to the earnings and assets positions of the two companies, information on which did not at present extend beyond the end of 1960. Profit Down

All that was known since then was that Consolidated Zinc’s 1961 profits were likely to be down substantially, said the “Financial Times.” Rio Tinto would have received rather less from its Rhodesian copper investments, its present main course of distributed income, but was expected to hold its single dividend from 1961 at 2s 9d.

It would be important to see the effect on its overall assets position of the still further streamlining of its Canadian uranium financial structure that took place last year.

It was the money that would be flowing in strongly from this segment of the Tinto group between now and 1966 that was likely to be useful in the merged concern to help finance the huge Australasian aluminium project, the newspaper said. It was hoped that income from this would start to accrue in the later half of the sixties when life for the uranium segment might become difficult after the present government contracts had run out.

Feltex Aust. Improves

(NZ. Press Assn.—Copyright) MELBOURNE. February 2. Directors of Felt and Textiles of Australia, Ltd.,' reported today that trading activities in the six months to December 31 last showed a considerable improvement over those experienced in the first six months of 1961.

Sales and profits of the Australian organisation were down compared with the corresponding six months ended December 31, 1960, but, over all. the organisation's profit was well ahead of that earned in the six months period to June. Directors today declared a steady interim dividend of 5 per cent, payable on April I. Full payout last year was 10 per cent., interim 5 per cent, and final 5 per cent.

“All human power is a compound of time and patience.”—Honore de Balzac.