R. W. Miller May Acquire Chevron

Press, Volume CVI, Issue 31136, 12 August 1966, Page 16

R. W. Miller May Acquire Chevron

<A Z. Press Association —Copyright) SYDNEY, August 11. R. W. Miller (Holdings) is prepared to buy the Chevron Hotel, Sydney, and develop it as the 35-storey tourist hotel originally planned. The receiver for Chevron Sydney, Mr B. H. Smith, and Millers, the Sydney brewer, hotelier and shipowner, issued separate statements yesterday mentioning a sale price of about 3.2 m dollars.

Mr R. W. Miller, chairman and managing director of the bidding company said: “The company has made an unconditional offer of 3.2 m dollars through Richardson and Wrench.” Mr Smith, in a statement released through the Stock Exchange, said: “The offer is not wholly a cash offer and on the market value of the securities is less than 3.2 m dollars. The offer is being considered.” Mr Smith would not elaborate, but Mr Miller said later: “We offered 1.2 m dollars in cash and 1 dollar shares in Miller (Holdings) which we consider to be worth 2m dollars. “How we arrived at

3.2 m dollars is purely a mat-' ter for the receiver to con-! sider.” Miller (Holdings) shares i closed yesterday at 1.69 dol-i iars. On this value the share i offer would be 1.6 m dollars' making the total offer 2.89 m j dollars. The last balance sheet of I Chevron Sydney to July 31! last year showed the hotel' and land valued at almost! 9.5 m dollars. Plant and equipment was valued at another: 600.000 dollars. The company ow r ed more than 8.2 m dollars to the public from whom it borrowed money on first mortgage debentures. Although the hotel has earned a surplus on operations, it has been insufficient to meet the substantial amount required to pay the interest charge on these and other borrowings. Recently Mr Smith announced plans to make the first repayment (of 10 cents in the dollar) on the amount borrowed from the public.