Forest Bid For Hutt Timber

Press, Volume CIX, Issue 31984, 10 May 1969, Page 22

Forest Bid For Hutt Timber

(New Zealand Press Association) : -i. ... ; AUCKLAND, May 9. N.Z. Forest Products, Ltd, has made, a take-over bid worth $3,084,281 in shares and cash for Hutt Timber Boldings, Ltd, of Auckland. The bid is conditional on 76 per cent acceptance and it is recommended by the Hutt Timber directors.

The offer, which waff anounced today by th* chairman of Hutt Timber (Mr L. G. Crimea), is five Forest shares for every four of the 514385 $1 ordinary shares of Hutt Timber, plus 25c cash a share. This makes it worth $5.90 a share, based on a market price of $4.52 for Forest shares, 23c higher than their

price ori’April 24, when Hutt Timber advised > its shareholders that the offer was pending. Full acceptance of the bid would involve Forest in the issue of 642356 shares and the payment of $128370 cash. The value of the bld—s3,o343Bl—compares with shareholders’ funds of Hutt Timber of $1,559,995.

However, Mr Grimes said, this was a conservative value of the assets involved in the take-over. The profit of Hutt Timber ih the year to November 30, was $113,758 and the dividend was raised from 10 per cent to 12 per cent Based on a 10 per cent dividend by Forest, the offer would increase Hutt shareholders' income to 12J per cent plus the cash element. Mr Grimes said Hutt Timber had had close relations with Forest Products over many years, particularly in relation to its forestry and sawmilling activity in Tokoroa. Forest had told the Hutt board that the company’s activities would he continued on much the same basis and under existing management.