CEMENT OFFER DEFENDED

Press, Volume CX, Issue 32209, 30 January 1970, Page 17

CEMENT OFFER DEFENDED

“The Press'* Special Service WELLINGTON, January 29. “It is completely erroneous to suggest that Wilsons (N.Z.) Portland Cement, Ltd, would be under overseas control if it were taken over by Winstone, Ltd, and Golden Bay Cement Company, Ltd,” the chairman of Golden Bay said today.

“Associated Portland Cement Manufacturers, Ltd, holds 57 per cent of Golden Bay’s equity and if the take-over is successful this will be reduced to 42 per cent,” Mr D. O. Whyte told a special meeting of his company. “And Golden Bay’s holding in Wilsons at the maximum acceptance can only be 50 per cent.” Mr Whyte said that there had been suggestions of corporate raiding, monopoly control of the North Island cement market, and control of the cement industry by overseas interests. “These statements must be causing both the shareholders and customers of Wilsons, and maybe several of their shareholders, some apprehension,” he said, “and I trust that 1 will be able to set their minds at rest. “We have made this offer in the sincere belief that it is in the interests of Wilson’s shareholders, the consumers of cement in the North Island, and the economy of the country, as well as the shareholders of our own company. * The meeting unanimously approved an authorised capital increase from s6m to sBm, and authorised the directors to issue, at par and credited as fully paid up, up to 4.4 million 50c shares, to fulfill the terms of the company's offer to the shareholders of Wilsons. Mr Whyte told the meeting that Government approval

had been obtained for the take-over, which was likely to go ahead. The overseas interests would hold only 21 per cent of the Wilsons capital. Proxy acceptances covering 68 per cent of the Wilsons shareholders had been received so far, he said, although the offer did not close, until February 20.