BRIERLEY’S RID

Press, Volume CIV, Issue 30827, 12 August 1965, Page 17

BRIERLEY’S RID

Rejection Repeated

(N.Z. Press Association)

AUCKLAND, Aug. 11. Directors of John Chambers and Son, Auckland, today repeated their advice to shareholders to accept the takeover offer, worth 36s 9d, of Andrews and Beaven, Christchurch, and to turn down the cash bid by R. A. Brierlev Investments, Wellington. Shareholders have now received the formal bid from I Brierley Investments, which is seeking 185,000 of the 445,000 Chambers’ shares for 45s cash, payable 5s within one month of the offer becoming unconditional and the remaining 40s in four 10s instalments within 12 months. With the 33,231 shares already held bv Brierley and a number “under offer” to it, this would give Brierley a majority interest, the memorandum of offer says. (The number under offer is not specified.) The unpaid purchase money would be secured by a floating charge in favour of a trustee (whose identity is not disclosed) upon the whole undertaking. “Meaningless” The charge would include in addition to the John Chambers’ shares acquired the total unencumbered assets of the Brierley group amounting to about £850,000. the memorandum says. The offer, closing on September 20, is on a “first come, first served” basis. In a circular to shareholders, the John Chambers’ chairman (Mr G. N. Roberts), says that the sum of £850,000 mentioned for “unencumbered assets” is meaningless, as no reference is made to the Brierley group’s liabilities. “The transfer of your shares for the sum of 5s does not carry an accepted method of security for the payment of a share price. “You part with the title to your shares for a payment of 5s only.” Mr Roberts also points out that shareholders would lose the dividend payable in October. In advising rejection of the Brierley offer, John Chambers’ directors are supported by their professional advisers, Mr Roberts says.