Company News MILBURN CEMENT

Press, Volume CII, Issue 30294, 21 November 1963, Page 21

Company News MILBURN CEMENT

Merger Plan Approved (N.Z. Press Association) DUNEDIN, Nov. 20. The proposed merger between the Milbum Lime and Cement Company, Ltd., of Dunedin, and the largely British-owned New Zealand Cement Company, Ltd., of Westport, was accomplished at an extraordinary meeting of Milbum shareholders in Dunedin this morning. As a result of resolutions passed at the meeting the Milbum Lime and Cement Company, Ltd., becomes New Zealand Cement Holdings. Ltd., while the New Zealand Cement Company, Ltd., which is to be known as the Guardian Cement Company, Ltd., becomes a wholly owned subsidiary of New Zealand Cement Holdings. Ltd.

Cement manufactured at Burnside will be marketed mainly in the South Island under the brand name Milbum, while the works at Westport will continue to sell its cement in the South Island and the North Island under the Guardian brand. The 82 Milbum shareholders and the 24 non-member proxy holders at today’s meeting unanimously approved of their directors making an offer to purchase the shares of New Zealand Cement Company, Ltd. 97 p.c. Accept This offer was accepted by 90.8 per cent of the shareholders in the New Zealand Cement Company, Ltd., and the Milburn chairman. Mi R. D. Stewart, told the meeting that further acceptances would bring the figure to 97 per cent. After the formal acceptance of the offer the meeting approved the capital changes and the change of name necessary to effect the merger.

Milbum's capital was increased by 600,000 £1 shares to £1,600,000 to provide capital for the issue of shares to shareholders in New Zealand Cement. The directors were authorised to issue 800,000 £ 1 shares, to be known as G shares, to shareholders in New Zealand Cement who accepted the offer. The issue is to be made on the basis of one G share for each two shares held in New Zealand Cement. Change Of Name

When it came to the change of names of Milburn to New Zealand Cement Holdings. Ltd., two shareholders, Messrs W. S. Armitage and A. McMillan voted against the proposal. They felt that the name Milburn should be retained. “Milburn is the more powerful company, and we are changing the name almost to that of the company which we are buying out,” Mr Armitage said. At the beginning of the meeting the Milbum chairman, Mr Stewart, said that if any of the resolutions, including that relating to the change of name, were not carried, then the merger would not proceed. Shareholders indicated that while some of them preferred to retain the name of Milbum in the new company they were not willing to risk the failure of the merger on this point. The final two resolutions passed by the meeting concerned the cash payments to shareholders and the 13-for--100 bonus issue