Holeproof Sells C.A.C. To I.C.I.

Press, Volume CIV, Issue 30667, 5 February 1965, Page 15

Holeproof Sells C.A.C. To I.C.I.

(New Zealand Press Association) AUCKLAND, February 4. Holeproof Industries Ltd., Auckland, has sold the Colonial Ammunition Company, Ltd., Auckland, to Imperial Chemical Industries (N.Z.) Ltd., and the Fletcher Trust and Investment Company Ltd., in a deal worth a total of £1.15m, the Holeproof chairman and joint managing director (Mr H. Korman) announced today.

This comes after the “don’t sell” warning issued on Saturday to shareholders in Holeproof’s parent company, Factors, Ltd., Melbourne. The deal involves all the 82,000 ordinary shares in C.A.C., which also owns Meredith Bros, and Company, Ltd., North Auckland toheroa processor, Mr Korman said. 1.C.1. (N.Z.), will hold 70 per cent of the C.A.C. shares and Fletcher Trust will hold the remaining 30 per cent. The conditions of purchase allow for the payment of an interim dividend to Holeproof by C.A.C., and require payment of a debt totalling about £350,000 owing by Holeproof to C.A.C. in respect of earlier sales of C.A.C. assets.

In October, Alex Harvey and Sons, Ltd., bought the subsidiary W. H. Bond and Company, Ltd., and Dominion Seal Company, Ltd., an Alex Harvey-Mauri Brothers and Thomson, Ltd.. venture, bought the crown seal division of C.A.C. The sale of C.A.C. leaves Holeproof with the following subsidiaries in New Zealand:

Holeproof Mills, Ltd., Holeproof (N.Z.) Ltd., Jacquard Hosiery Mills Ltd.; and Rodfield Woollens Ltd. C.A.C. was bought by Holeproof in April, 1960, for £779,000. War Scare ft was established on Its present site in Mt Eden during a Russian war scare, and is one of New Zealand’s oldest companies. The plant produced ammunition for the New Zealand Government during the Boer War and World Wars I and 11. During World War II the plant produced small-arms ammunition at a yearly rate of 70m rounds. Today the company still makes military ammunition, including the N.A.T.O. 7.62 mm. cartridge, for the New Zealand Government. However, its main activity is the manufacture of a wide range of sporting ammunition, including 1.C.1. brands made under agreement. Other activities include the production of many plastic and small metal articles.