COMMERCIAL Marine Packers Bid By N.Z. United

Press, Volume CVIII, Issue 31661, 23 April 1968, Page 23

COMMERCIAL Marine Packers Bid By N.Z. United

(New Zealand Press Association) AUCKLAND, April 22. N.Z. United Corporation, Ltd, the Wellington investment and development group, is offering 25c a $1 share for at least 40 per cent and up to 49 per cent of the capital of Marine Packers and Exporters, Ltd, Auckland, which last sold in March at 12c.

Directors of the unsuccessful fishing and poultry venture strongly recommend acceptance of the offer. They will sell all shares they hold themselves.

N.Z. United wants acceptance for not less than 126,594 of the 316,484 shares. | It is understood that the I offer does not apply to the ■ 158,000 shares, or 49.9 per cent of the capital, held by Fletcher Holdings, Ltd. Because 40 per cent of Marine Packers capital on its own would be of little use to N.Z. United, it may be concluded that Fletcher and N.Z. United have a joint scheme in mind. Joint Holding Acceptance of the bid for the required number of shares would give them a joint holding of 89.9 per cent Acquisition of a few more shares, possibly already held through others, would give the two companies more than 90 per cent of the capital. As Fletcher has held more than 40 per cent of the capital for several years, it seems that a combination of which it formed part could use Marine Packers’ tax losses. At March 31, 1967. these stood at $168,000 and they may have increased since. N.Z. United, a listed company whose shares are seldom traded, is an offshoot of the Wellington sharebroking firm of Daysh, Renouf and Company, which has acted as Fletcher’s brokers for many years.

Acceptances are required by May 17. In a letter to Marine Packers’ shareholders, the chairman (Sir Alex Mackenzie)

says that the bid offers the most likely opportunity to obtain the maximum possible return of cash. In making their reconv mendation, directors considered the depletion of shareholders’ funds through losses in the last four years and the virtual impossibility of disposing of the remaining assets at anywhere near their book values. Assets Realisation In the event of a forced sale of these assets the directors estimated that the return to shareholders would be considerably less than 25c a share, he says. He reminds shareholders of their request at the annual meeting in November to dis-

pose of the assets as quickly as possible. Marine Packers floated with a paid capital of $250,000 in November, 1962. Capital was increased to $316,484 in the take-over of Northern Poultry Supplies, Ltd, in 1964. No Dividends At the time of the flotation, directors forecast a dividend of 8 per cent for the first full year, but the company never paid a dividend. After a profit of $13,065 in the year to March 31, 1963, it suffered losses of $14,342 in 1964: $8444 in 1965; $52,928 in 1966: and $98,084 in 1967. By 1965 it was fishing with three trawlers, two of which were specially built. However, export sales were disappointing, and the poultry subsidiary suffered losses. In 1966 it was decided to dispose of the fishing assets and to concentrate on poultry processing.