One-For-Five Issue By A.C.I. At 180c

Press, Volume CVIII, Issue 31760, 17 August 1968, Page 18

One-For-Five Issue By A.C.I. At 180c

(N.Z. Press Association—Copyright) SYDNEY, August 16. For the first time since 1961, the glass-making and engineering group, Australian Consolidated Industries, Ltd, is calling on shareholders to supply more equity capital.

The shareholders will be offered one new share for every five shares held at 180 c a share. The issue wil linvolve 9,795,628 $1 shares and will raise $17,631,000.

The 1961 Issue was a one-for-five at a 50 per cent premium.

Directors give no reasons for the need for equity funds, nor do they give dividend possibilities after the issue. The issue was foreshadowed a year ago when the chairman said more capital would be raised during 1968.

The funds were needed for computer installation, improving production facilities and broadening the company’s base of operations. (On the latter aspect the group has announced plans for a S4m expansion of the fibreglass operation—particularly for textile fibreglass, used in plastic and reinforcement for boats, cars, etc.) Dividend Rate The present rate of 10c a share is almost twice covered by earnings (19.3 c last year). The new shares will be payable 100 c on application by

of 340 c provides a theoretical value of about 133 c for the rights to the issue.

The issue comes after AC.I. sold its bright steel operations in New South Wales and Queensland for an undisclosed amount of cash to Martin Bright Steels, Ltd. The group is presently extending into fibreglass and engineering (with Johns Perry in the 50-50 venture of David Lennox).

i November 30 and the rest on September 30, 1969. The share price yesterday

Wallace Sees Lower Profits

(N Z. Press Association) AUCKLAND, August 16. D. McL. Wallace, Ltd, Auckland engineer, expects to maintain turnover this year, but lower margins and higher costs may hold the profit below the rates in the last few years, the chairman (Mr D. McL. Wallace) says in the annual report. He emphasises that although the company offers a diverse range of products, its principal customers are the fanning and transport industries. While contributing only modestly to group turnover, exports have been an important part of activities in the last few years. The accounts show the consolidated net profit was $15,186 or 24.7 per cent down at $46,234, after depreciation of $44,245 (up $2467) and tax of $26,910 (down $15,544). As announced, the dividend was reduced from 10 to 9 per cent as a result, the earning rate on average ordinary share holders’ funds dropped from 13.5 to 6.9 per cent and average ordinary capital from 26.6 to 13.3 per cent