COMMERCIAL Hamersley Iron To Float $25m Issue

Press, Volume CVI, Issue 31320, 16 March 1967, Page 26

COMMERCIAL Hamersley Iron To Float $25m Issue

(N.Z. Press Association—Copyright) SYDNEY, March 15. Hamersley Holdings, Ltd. will seek 25 million dollars from local investors next month in the biggest float in Australian company history. The company will offer 10m 50-cent shares at a premium of 200 cents each.

This will give Australians a 10 per cent direct stake in the giant iron ore complex, which is based on deposits 650 miles northeast of Perth.

This will give Australians a 10 per cent direct stake in the giant iron ore complex, which is based on deposits 650 miles north-east of Perth.

Paid capital after the issue will be 50m dollars including 27m dollars held by Conzinc Rio Tinto of Australia Ltd. and 18m dollars by Kaiser Steel Corporation, of the U.S. Australians own 15 per cent of the 39.7 m dollars paid capital of C.R.A. Announcing the issue last night, directors of Hamersley

said dividend payments would not be practicable before 1970. But the dividend rate then was expected to be 30 per cent - They said the prospectus, expected to be available about April 11, would also show consolidated profit after current and future income tax, would be at an annual rate of not less than 22m dollars—or 44 per cent on capital—by the close of 1970. Directors said shareholders

in C.R.A. would have a prior right to apply for 2,342,190 shares in Hamersley on the basis of one for five C.R.A. shares held on March 31, and the priority can be exercised up to April 26. Not Transferable The prior rights would not be transferable or renounceable. Subject to this priority, the issue would be taken firm by the underwriters, lan Potter and Company, far distribution throughout Australia and New Zealand. C.R.A. Holdings Pty., Ltd., a subsidiary of Rio TintoZinc Corporation Ltd. of Britain, holds the British company’s 85 per cent interest in C.R.A. and will not share in the priority. The holding company, through Hamersley Iron, mines iron ore deposits in the Hamersley Range. In addition, Hamersley Iron is scheduled to begin production by April 1968, of iron oxide pellets from a plant now being built. Shares Payable The shares will be payable 1.25 c on application and the balance on October 31, 1967, or in full on application at the option of applicants. Referring to dividend prospects to be outlined in the prospectus, directors said the loan agreement with North American banks restricted Hamersley Iron in payment of dividends. The North American banks are believed to have loaned about 80m dollars to help finance the project, the “Sydney Morning Herald” reported today.