New Tonka Issue

Press, Volume CIX, Issue 31983, 9 May 1969, Page 6

New Tonka Issue

(N.Z. frits MtOMUM) AUCKLAND, May 8. Tonka Corporation (New Zealand), Ltd, Auckland subsidiary of the large United States toy manufacturer, will offer New Zetland investors t 25.9 per cent interest by the issue of 116,300 100 c shares at a premium of 72e. The yield will be 5.2 per cent from dividend and 11 per cent from forecast 1969 earnings. The issue opens on May 26. All shares nave been taken firm by the organising brokers, Jordan, Sandman. Smythe and Company, and others members of the stock exchanges. The issue will lift th* paid capital to $449,154, of which Tonka Corporation Inc., of Minnesota, will hold about 60 per cent. The directors forecast that

tax-paid profit for tbe year to December 31 would be not less than $85,000. This would give an carding rate of 18.9 per cent on capital. The forecast dividend is 9 per cent. The shares now to be issued would qualify for half of this.

The earning rate on shareholders' fund* has been exceptionally high in the past, but should settle down at about 16 per cent after the issue, the directors say. Besides the share issue, the company will make a debenture issue of $250,000, immediately after the share issue has been completed. Tonka's main products are toy truck* and other “commercial” vehicles. It also makes plastic kitsets, dolls and slot racing sets. It Is intended to broaden this range. Th* company is the only Tonka manufacturing unit in the Southern Hemisphere and there are no plans to license others. The New Zealand company exports to Australia, SouthEast Asia, the Pacific, South Africa, the United Kingdom and the Continent. Exports in the year to December 31 were $565,000 and it is understood these are expected to rite to $900,000 this year. Supplies to Europe are only temporary, but substantial potential is seen for markets closer to New Zealand. Markets in Malaysia, Singapore, the Philippines, Thailand and Indonesia are starting to be developed. The directors, in the prospectus, point to the advantages of large export sales, such as tax savings, import licence entitlements and flexibility not available to companies wholly dependent on one market P.T.Y. Industry Profit Up

The unaudited group net profit of P.T.Y. Industries, Ltd, is about 45 per cent higher than last year, the directors announced in a preliminary statement. The recommended final dividend for the year to March 31 is 5 per cent, payable June 3; ex May 16. This payment makes the total dividend for the year $ per cent. The directors say that this is equivalent to 13.7 per cent on the ordinary capital of the company before the 5;7 bonus issue of $500,000, made on July 31 last year. Last year the total dividend was 10 per cent.