N.Z. PAPER MOVE

Press, Volume CIII, Issue 30531, 28 August 1964, Page 16

N.Z. PAPER MOVE

Interest For N.Z.F.P. . <N.Z. Press Association) DUNEDIN, Aug. 27. ’ Shareholders in New Zealand- Paper Mills Ltd., today eranted New Zealand Forest Products Ltd., a quarter interest in their company for £5OOOOO. Approval for this and other capital changes were made at an extraordinary meeting of shareholders in Dunedin. Changes made were:— An increase in the authorised capital to £lm by the creation of 500,000 new ordinary shares of £1 each. An offer to shareholders as at August 27 of one new share for each five held at a-premium of ss. The issue to New Zealand Forest Products of 250,000 of the newly created ordinary shares at a premium of £l. The approval of a bonus issue from the share premium reserve of three shares for each 17 held at April 1, 1965. The shares issued to New Zealand Forest Products will participate in the bonus issue. Changes Approved The meeting also approved of changes in the company’s articles. The effect of these changes was to remove a voting restriction on shares and .to permit the Fletcher Trust and Investment Company. Ltd., and New Zealand Forest Products Ltd.,, to have two representatives ■ each on the board. The maximum number on the. board is to be nine and the minimum five. A director of New Zealand Paper Mills (Sir James Fletcher). said the entry of New Zealand Forest Products into the company was a move to ensure the rationalisation of the fine paper industry in the South Island. In reply to a shareholder’s question Sir James Fletcher said: “There is no question of Forest Products holding guns at the heads of the Paper Mills.” He described the partnership between the two companies as a “must”, and through it he was certain that the industry could develop in an orderly fashion.