PYE BID FOR ULT.-EKCO

Press, Volume CII, Issue 30042, 29 January 1963, Page 17

PYE BID FOR ULT.-EKCO

Higher Div. Forecast

If the forecast 7| per cent dividend is paid by Pye Electronics, Ltd . shareholders in Ultimate-Ekco (N.Z). Company, Ltd., will receive a 40 per cent Increase in dividend income. In the event of the take-over bid for Ultimate-Ekco succeeding, according to the Ultimate-Ekco chairman (Mr W J. Truscott)

As reported earlier, Pye Electronics has made a takeover bid for Ultimate-Ekco based on a cash price of 35s an Ultimate-Ekco share, or seven ordinary shares of £1 in Pye Electronics for each six ordinary shares of 10s in Ultimate-Ekco. or any combination of these alternatives

In a circular to shareholders, Mr Truscott says that last year Ultimate-Ekco made a net profit after tax of £37,318, representing 21 4 per cent on capital and 10 6 per cent on average funds, from which a dividend of 12} per cent, was paid, being a 10 per cent ordinary dividend and 2} per cent anniversary bonus.

“As Pye Electronics has not yet been incorporated for a full financial year, comparable figures are unavailable, but a circular recently issued to the shareholders of Pye Electronics forecasts ■ dividend of 7} per cent.” Mr Truscott point* out that a 12} per cent dividend on six shares in Ultimate-Ekco amounts to 7s 6d The shareholder who exchanged six shares for seven Pye Electronics shares vould receive a dividend of 10s fid if the 7: pier cent d'vidend was paid, as forecast, compared with the 7s fid received last year on the six UltimateEkco shares. “While Ultimate-Ekco has been progressing satisfactorily and making reasonable profits, your directors feel that we are faced with substantia] expansion, and with the raising of at least £250,000 additional capital to provide for buildings and machinery,” says Mr Truscott.

“Under todays economic conditions your directors are not over-optimistic and feel that the raising of such a sum at this time may prove fairly difficult Your directors feel that Pye Electronics. Ltd. are malting a very fair offer for the company’s business covering buildings, machinery stocks, reserves and have included a very satisfactory figure for goodwill" Pye Electronics has an issued capita] of £1.050.000 and is the holding company for a group of wholly-owned New Zealand subsidiaries whose activities include the manufacture of television, radio receiving and transmitting apparatus, and other electronic equipment, gramophone records and wire and cable. The majority shareholder in Pye Electronics is Pye, Ltd, of Cambridge. England, which, with E K Cole, Ltd, now comprise British Electronics E K Cole is already a substantial shareholder in Ultimate-Ekco The closing date far acceptance of the Pye Electronics offer is February 15. The offer Is conditional upon 90 per cent acceptance, or such smaller number a* Pye Electronics may determine.