Bruce And Alliance £600,000 Merger

Press, Volume CI, Issue 29859, 27 June 1962, Page 17

Bruce And Alliance £600,000 Merger

(Neu? Zealand Press Association) DUN&DIN, June 26. The directors of the Bruce Woollen Manufacturing Company, Ltd.. Milton, are recommending to shareholders the acceptance of a new offer worth nearly £600,000 by Alliance Textiles, Ltd., to acquire the issued capital of Bruce Woollen.

This follow s the “don’t sell” warning given by the Bruce directors on Monday.

The effect of the offer, if it is accepted by Bruce shareholders, is that Bruce shareholders will get three shares in Alliance for every four of their Bruce shares. In addition Bruce shareholders will get a cash payment of 2s 3d from Alliance for each of their Bruce units. Bruce preference shareholders will get a cash payment of £1 2s 6d from Alliance for their £1 preference shares. Cash payments to Bruce shareholders will cost the Alliance company a total of £146,250. The payment of 2s 3d on the 800.000 Bruce ordinary units will take £90,000, and the payment for the £50,000 preference capital will cost £56,250. Joint Statement “It has been decided that it is to the advantage of both our companies to effect a merger of interests,” said the chairman of Bruce, Mr A. C Stewart and the chairman of Alliance, Mr L. H. Whyte in a joint statement this afternoon. “Accordingly the directors of Bruce are recommending to shareholders the acceptance of an offer by Alliance to acquire Bruce shares. “Details of the offer will be communicated to shareholders within the next few days.” They released the terms of the offer “to avoid unneces-

sary speculation.” Paid capital of Bruce Woollen comprises £50,000 in preference shares and £200.000 in 5s ordinary shares. At 15s (Monday's price) for Alliance shares, and allowing for the cash payments to Bruce ordinary and preference shareholders, the deal is worth £596.250 in terms of today’s market values.