COMMERCIAL Marlin Take-over Puts U.E.B. Ahead

Press, Volume CIX, Issue 32145, 14 November 1969, Page 13

COMMERCIAL Marlin Take-over Puts U.E.B. Ahead

The take-over offer by U.E.B. Industries, Ltd, for Marlin Carpets, Ltd, of Christchurch, announced yesterday, will make U£.B. a clear leader in New Zealand carpet production and export

At present U.E.B. is ahead of F and T New Zealand, Ltd. the other producer, on value but not on’volume, and U.E.B. has specialised in exporting the more expensive tufted and Bremworth range. Like F. and T., Marlin is a tin share.

woven carpet maker. The take-over will be exe- i cuted by a share exchange ! with Overseas Carpets, Ltd, I of Britain, the majority shareholder in Marlin, and a offer < of three U.E.B. 50c shares for < each publicly held 100 c Mar- i

At present prices, the acquisition will cost just over slm. The capital of Marlin is §660,000. The directors of the two companies said in Christchurch yesterday that, having received all the official con-

seats necessary, U.E.B. had contracted to buy all the shares in Overseas Carpets, which owns 69 per cent of MaVlin. The transaction will be settled in London on November 28, after which U.E.B. will make its offer for the remaining Marlin shares. The purchase price of Overseas Carpets was arrived at when Marlin shares were selfing at 380 c in New Zealand, the U.E.B. directors said. The latest sales have been at 440 c. Independent It is intended that Marlin will operate as an independent unit, and its close association with Axminster Carpets, Ltd, of the United Kingdom will continue. Apart from making U.E.B. the major carpet maker in New Zealand, the ensuing exchange of technical and managerial abilities and know-how should be invaluable to both companies, the statement said. Mr W. H. Dutfield, the present chairman of Marlin and chairman and managing director of Axminster Carpets, will remain on the board, of the company, as also will the three executive directors— Messrs K. R. H. Neville, R. S. Morton and R. C. Edwards. Marlin Record Marlin, which operates a factory in Maces Road, Christchurch, went public in 1967 with a issue of its ordinary 100 c shares at 212 c a share, but the issue was not a success because of the recession.

However, in the year to March 31, 1969, net profit rose by about 11 per cent to a record $220,002, and the dividend was raised, for the third year in succession, to 17J per cent

The earning rate on capital was 33.3 per cent and the shares have a net assets backing of 183 c.