DUNEDIN WHOLESALE MERCHANTS’ BID

Press, Volume CII, Issue 30121, 3 May 1963, Page 13

DUNEDIN WHOLESALE MERCHANTS’ BID

(New Zealand Press Association)

INVERCARGILL, May 2. A bid tor the shareholding of Royds Bros, and Kirk (Southland), Ltd., has been made by J. Rattray and Son, Ltd., wholesale merchants with head offices in Dunedin. The offer, which had previously been declined by the directors of Royds Bros, and Kirk, has now been made direct to shareholders. Two previous offers were also declined by the directors. The basis of the latest offer is, one £1 fully paid ordinary share in J. Rattray and Sons, Ltd., plus 30s in cash, for every two £1 fully paid ordinary shares in Royds Bros, and Kirk.

One £1 fully paid s'i per cent, cumulative preference share in J. Rattray and Son, Ltd., plus £ 1 in ’ cash, for every two £1 5J per cent, preference shares in Royds Bros, and Kirk.

The shares offered are to rank in all respects on a completely equal footing with the existing Rattray shares both as to dividends and 1 voting rights. A circular sent to Royds shareholders says that Rattrays is paying a 10 per cent, dividend on its ordinary shares, compared with Royds 6 per cent., and the directors see “not the slightest reason” why they cannot maintain that rate on the increased capital which would result if the offer was accepted. “Your company and ours operate extensively in the Southland province; we market substantially the same lines, and we have substantially the same clientele. Why then continue to operate independently when a merged is obviously to the advantage of the shareholders of both companies and would contribute so much to the rationalisation of the trade in Southland?” says the circular.

The offer is subject to acceptance on oj- before May 24. or an extended date which J. Rattray and Son, Ltd., may decide upon. Royds Bros, and Kirk (Southland) has a capital value of 50,000 ordinary £ 1 shares and 15.000 preference £1 shares.