Company News NEW MOVE BY KAIAPOI

Press, Volume CII, Issue 30040, 26 January 1963, Page 16

Company News NEW MOVE BY KAIAPOI

Proposal To

Lift Capital

The Kaiapoi Woollen Manufacturing Company, Ltd, Chriatchurch. proposes to increase nominal capital from £600,000 to £l.sm in 5s units as part of the preparation for the proposed merger with the Wellington Woollen Manufacturing Company, Ltd. The Christchurch company has called a meeting of shareholders for February 18 to approve the increase in capital, to increase the maximum number of directors from seven to nine, and to change the name of the compainy to Kaiapoi Petone Group Textiles, Ltd. The latter proposal is conditional on acceptance of the company’s offer for Wellington Woollen.

If the offer is successful, paid capital of Kaiapoi will increase from its present £500.000 to £837,500. Upon conversion in 1967 of the unsecured notes which will be issued to Wellington Woollen shareholders, capital will rise to £912,500. Future Issue

In the meantime, the company will have a considerable balance of unissued capital which will be available for any future issue.

In a circular to shareholders, outlining .these proposals. Kaiapoi's chairman that directors are confident that directors are confidence that if the offer is successful the resultant merger cannot fail to be of material benefit.

“The combination of all the existing resources of the two companies will result in the creation of a substantial and effective organisation for the manufacture and distribution of woollen goods and textiles,” he' adds. Mr McCallum says that considerable advantages, both short-term and long-term, may be expected to stem from the merger.

These include economies in production and distribution, a better use of assets and technical resources, and the expansion of joint interests on a more economical basis than would otherwise be possible.