Profits, Not Assets Criterion Of Bid

Press, Volume CVI, Issue 31364, 9 May 1967, Page 21

Profits, Not Assets Criterion Of Bid

(New Zealand Press Association) WELLINGTON, May 8. Because it was not the intention to liquidate National Electric, the question of asset values becomes largely academic and the main criterion was one of profitability, the chairman of Cable Price Downer, Ltd. (Mr K ,C. Campbell), says in a letter accompanying the formal take-over offer for Neeco released today.

He is supported by the chairman of National Electrical and Engineering Company Ltd., (Mr I. M. Matheson) who, in a separate letter re-

commending acceptance of the offer, says it means an exchange of an asset backing of 33s 8d in C.P.D. for one of 41s 3d in Neeco. “Cable Price Downer has in recent years shown a substantially higher earning rate than National Electric and a greater proportion of profits has been retained in the business,” says Mr Matheson. “The take-over offer is not a sale of National Electric shares for cash but an exchange of shares which assures to National Electric shareholders a substantial continuing interest in the combined operations. “A net assets basis is not the most appropriate one on which to determine the real worth of an undertaking. A truer basis is the dividends which shareholders could reasonably expect from an investment in the company so that, on this basis, the offer made by Cable Price Downer would be a distinct benefit to National Electric shareholders” says Mr Matheson. Business Personal Mr L. A. Atkinson, who retired as chairman of the State Services Commission last December, is to be retained in a consultative capacity by Alcan New Zealand, Ltd. Mr I. C. Baillie has been appointed to the board of directors of Unit Subdivisions, Ltd., and as managing director of Marine Estates, Ltd. —a division of Unit Subdivisions which has substantial land developments in the Pakuranga area in Auckland. Mr G. Duncan has resigned from the directorate of New Zealand Refining Company, Ltd. Mr P. W. Wilson, Wellington, has been appointed to fill the vacancy. DIVIDENDS Wilson Malt Extract Company Ltd., Dunedin.—Final 4 p.c. payable June 29, ex June 22. Total 7 per cent. (Steady.) Auckland Gas Co. Ltd., Auckland.—Annual 5 p.c., payable June 15, ex May 29. (Steady.) UNIT TRUSTS

Buy Sell s d. s. d. 1st N.Z. Unit ..4 4 4 8 N.Z. Income* ..4 0 4 4 N.Z. Accum. ..5 4 5 8 Inv. Unit .. 4 5 4 10 •Ex dividend.