£4.2M. BID

Press, Volume CII, Issue 30103, 10 April 1963, Page 19

£4.2M. BID

Offer For H.G Palmer

(N.Z. Press Assn.— Copyright) SYDNEY, April 9. The Mutual Life and Citizens’ Assurance Company, Ltd., has made a take-over offer worth £4,200,000 for the biggest electrical retailer in Australia—H. G. Palmer (Consolidated), Ltd. The M.L.C. has offered four of its £1 shares for every twenty-five 5s shares held in H. G. Palmer.

The managing director of H. G. Palmer (Mr H. G. Palmer) said last night that the board would consider the offer today and would make a statement after the meeting, the message says. H. G. Palmer’s 5s shares have been selling around the 15s 9d mark in Australia, while M.L.C.’s £1 shares are worth about £6 15s. The offer thus puts about 21s (Aust.) on the H. G. Palmer shares. At December 31, 1961, the Mutual Life and Citizens’ had assets of £216,983.000. Life assurances covered totalled £772m.

Consolidated net profit of H. G. Palmer was £434,991 in the year to June 30, 1962. equal to 34.4 per cent, on ordinary capital. The steady 12J per cent, dividend took £124,260 and the preference charge required a further £83,000.

A parcel of 400 H. G. Palmer changed hands at the morning call in Christchurch yesterday at 13s 9d, 6d above the price paid in Auckland on April 2. The M.L.C. offer is equivalent to about 17s 9d in New Zealand, at the current premium.

Natural Gas Flow At Bony Creek

(N.Z. Pres." Assn.—Copyright) MELBOURNE, April 9. The Associated Group of oil companies has struck a natural gas flow of 2 million cubic feet a day at the Bony Creek No. 1 well. The production test produced a steady flow at this rate over a three day period. The well is now fully equipped as a gas producer and the rig is being moved to Bony Creek No. 2 about one mile and a half to the north-west.

Moonie Pipeline Contract Let

A Japanese company has won the contract for supplying the 186-mile pipeline from the Moonie oilfield to Brisbane.

The contract, believed to be for £lm, was let to Sumitomo Metal Industries, of Osaka, according to an announcement from Union Oil Development Corporation. The pipeline is expected to be in operation next February with a capacity of 1,750,000 gallons a day.