C.S.R.-8.M.I. Has 89p.c. Of R.M.C.

Press, Volume CIII, Issue 30560, 1 October 1964, Page 24

C.S.R.-8.M.I. Has 89p.c. Of R.M.C.

(N.Z. Press Association—Copyright)

SYDNEY, September 30.

Colonial Sugar Refining Company, Ltd., and Blue Metal Industries had received an 89 per cent acceptance of their offer to shareholders of Ready Mixed Concrete, Ltd., R.M.C.’s new chairman (Mr J. W. Austin) told today’s annual meeting.

Mr Austin, who also is chairman of 8.M.1., said the required 90 per cent acceptance was “just around the corner.”

Mid-way through September the offerer company reported they had received 77 per cent acceptance. Mr Austin said today trading since June 30 had been disappointing, mainly because of adverse weather in States other than New South Wales and severe competition in

Ready Mixed Concrete, particularly in Victoria. Trading so far in the current year was “adverse” compared with the corresponding period of the previous year. Only about 40 shareholders attended the meeting, the quietest for years and in sharp contrast with the annual meetings of 1962 and 1963 and the extraordinary general meeting called to consider directors earlier plans for use of the proceeds from sale of the United Kingdom subsidiary. Mr Austin said additional funds from the United Kingdom sale, apart from those returned to shareholders, had not yet been reinvested in the business.

After moving the adoption of the annual accounts, he said there was nothing in them that the present board would consider required alterating and nothing in the balance sheet to which the present board would take exception. (The accounts covered a period before the advent of the present board' and the chairman’s accompanying statement was prepared by the former chairman, Mr J. G. Palmer.) No questions were asked by the meeting before, the passing of the accounts and Mr Austin stated at the outset that he was not prepared to discuss the 8.M.1.-C.S.R. takeover.

The only question put to him was whether the offerer companies knew about the claim for damages from Composite Holdings, Pty., Ltd., when C.S.R.-8.M.1. made their offer.

Composite Holdings, Pty., Ltd., has issued a writ claiming £4.3m in damages from R.M.C. on the grounds of breach of contract. Mr Austin said 8.M.1. and C.S.R. had no knowledge of Composite Holdings’ claim before it became public knowledge. The five new directors, Messrs J. W. Austin, J, W. Dunlop, J. A. Bruce, J. M. Dixon and J. D. Patience, were automatically elected to the board since there were no other nominations. Directors remuneration was set at £14,500, the same as for the previous year.