G. POULTRY TAKEOVER

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

G. POULTRY TAKEOVER

Br. Tob. Offer Accepted (N.Z. Press Assn.—Copyright) SYDNEY, March 15. The directors of Golden Poultry Farming Industries Ltd. recommend acceptance of the bid of 1.28 dollars cash a share from Associated Products and Distribution Pty. Ltd., a subsidiary of British Tobacco Co. (Australia) Ltd. Directors said last night they had heard no more about the possibility of another take-over offer. In the six months to December 31, the company suffered a loss in spite of a 21 per cent lift in sales. Interim dividend has been omitted.

Directors said last night the loss was due to the uneconomic conditions in the industry particularly in the early part of the current year. “We have taken every possible action to reduce production costs and feel the company is now in a far better position to cope with the existing competition.” They said the decision to pass the interim dividend had been made in view of the loss and current liquidity. Commenting on their decision to recommend the Associated Products bid, directors said they were confident the company could return to profitable trading. “However, acceptance of the offer would accelerate rationalisation of the industry and enhance future development of the company”. Unit Subdivs. Double Sales (N.Z. Press Association) AUCKLAND, March 15. Sales of Unit Subdivisions since October 1 were almost double those in the same period of last year, the actingchairman (Mr T. H. I. Fleming), said in a statement today. The five months from October produced five successive peaks for the company, and the sale of better-class sections now being produced had increased profit margins. The directors felt that present economic trends would lead to further increases in sales.