Good Take-Over Year In Australia

Press, Volume CI, Issue 29798, 14 April 1962, Page 16

Good Take-Over Year In Australia

Companies making takeover offers or issues to acquire assets were in a strong bargaining position in the market of 1961, where credit was short and liquidity tight, says the annual report of the Sydney Stock Exchange.

In these circumstances, companies were "able to dictate the terms of take-overs and acquisitions." and share exchanges were more frequent than cash transactions, the report says. Of 40 take-overs in 1961 <1960. 43'. payment for 30 <24> was in shares only.

Cash raised in new issues fell from £Blm to £72m.

New 7 company listings were well down at 53 (1960. 90i. with a total listed ordinary capital of £35.6 million. Schweppes (Australia). John Dysaght, and Reed Paper, three existing companies with English parent organisations, accounted for £ 19.5 m of this total. Commonwealth Government bonds rose by £92.5m compared with a gain of £ 11.4 m a year earlier.

An increased number of preference share issues were made, mostly privately and therefore not listed. Forty-eight companies were removed from the list for various reasons (1960, 61).

A comparison with quarterly figures issued by the Commonwealth Statistician suggests that new share raising by companies listed in Sydney represent between 70 and 80 per cent, of raisings by all listed companies in Australia. At December 31. 1961. there were 928 companies on the official list—B3o investment, 98 mining.

Of some 700 listed companies. 85 increased their dividend in 1961. 175 paid reduced dividend (94 paying no dividend) and 362 paid steady rates. Forty-two companies failed to pay dividends in 1960 and 1961.

Profits of listed companies declined from £ 182.8 m to £ 164.3 m or about 10 per cent, compared with a rise of 23 per cent, in 1960.