Walton 6m Dollar Bid For M. Clark

Press, Volume CVI, Issue 31142, 19 August 1966, Page 14

Walton 6m Dollar Bid For M. Clark

(N.Z. Press Association—Copyright)

SYDNEY, August 18.

Waltons. Ltd., expanding Sydney retailer and financier, has made a 6m dollar cash and unsecured-note offer for Marcus Clark and Company. Ltd., ailing suburban chain.

Marcus Clark directors will “whole - heartedly” recommend acceptance of the offer, which they regard at present as the best solution to the company's financial difficulties.

Acceptance of the offer would add 10 stores in N.S.W. and one in Adelaide to ne 61 that Waltons already own. The chairman (Mr J. R. Walton) said last night his company was particularly interested in Marcus Clark’s stores at Wollongong, Newcastle and Liverpool, where Waltons’ existing premises were inadequate. Marcus Clark has been in business since 1883—more than twice as long as Waltons—but has incurred serious losses in the last three years, including a 1.5 m dollar loss for the half-year to January 31. Early this year the company sold its main store in Railway square, Sydney, to the Department of Technical Education. Mr Walton said his company was in a “pretty comfortable position for cash” after its recent deal with the First National City Bank of New York, under which the bank acquired a 50 per cent interest in Waltons’ finance subsidiary for more than 3.5 m dollars. The proposed 6m dollar

purchase price comprises 2.7 m cash and 3.3 m in securities.

It consists of: 12 cents cash each for at least 90 per cent lof the 6.951,498 Marcus Clark 50-cent ordinary shares. 75 cents cash each for at least 90 per cent of the 300.000 2-dollar 6 per cent first preference shares. 29”,848 61 per cent second preference shares, and the 500,000 6J per cent third preference shares, with a waiver to arrears of dividend. Holders of at least 75 per cent of the issued debentures of Marcus Clark Acceptance. Ltd., to agree to accept a cash payment representing 25 per cent of the face value of their debentures, and accepting unsecured notes in Waltons, Ltd., in exchange for the remaining 75 per cent of the face value of their debentures. The offer is subject to the trustee for the debenture holders not opposing the offer to the debenture holders.