COMALCO TO BECOME PUBLIC COMPANY

Press, Volume CIX, Issue 32220, 12 February 1970, Page 16

COMALCO TO BECOME PUBLIC COMPANY

(Aew Zealand Press Association)

WELLINGTON, February il.

Comalco Industries Proprietary, Ltd, which lifted its consolidated net profit 47 per cent to $14.2m in the year to December 31, will become a public company and issue 13 million new 50c shares about April.

The chairman (Mr D. J. Hibberd) said in the annual report that substantial capital expenditure would require more funds to be raised in 1970.

This would be done by the new issue and borrowing. The Issue would be madt at a premium and, upon iti completion, the shareholdings in Comalco would be. Con sine Riotinto of Australia Ltd, 45 per cent: Kaiser Ahi minium and Chemical Cor poration. 45 per cent: ami i public, 10 per cent. 1 Mr Hibberd said that i since the inception of Co ‘ maleo's operations it had been envisaged that ownership of the company would be widened to include a public shareholding. The new shares would be widely distributed in Australia and New Zealand to reflect Comalco’s range of interests. and C.R.A. shareholders with Australian and New Zealand addresses on March 23 would be able to partici- | pate through a priority of ap- ; plication in the issue. Riotinto-Zinc Corporation, I Ltd. of the United Kingdom, | which is the major sharei holder in C.R.A., would not : participate. PROFIT, TAX The 514.2 m profit was i gained after providing SB.3m i for tax, including S4m for i future tax. the company said today. A dividend of sB.4m. representing a return of 14.4 per cent has been declared for the two equal shareholders, C.R.A. and Kaiser. The profit was equivalent to a return of 18.4 per pent on average shareholders’ funds employed, of 24.4 per cent on issued capital. Gross sales of s9om were 27 per cent higher than those of 1968, and among the reasons for the rise in profit were more sales of bauxite, primary aluminium and semifabricated products, and the

The Hooker Investments Corporation. Ltd. reported a net profit of 51.177,000 for the six months to December 31, compared with 5867.000 for the corresponding period of the year before. This,is an increase of 35.8 per cent An interim dividend of 4 per cent has been declared, payabel May 1; ex dividend March 23 .

lifting of the power restrictions in Tasmania which had curtailed primary metal output in 1968. Costs were reduced in some areas through higher utilisation of plant.

BIG CONTRIBUTION Mr Hibberd said the aluminium industry continued to make a major contribution to the economic strength of Australia.

Although still partly reliant on a healthy increase in the domestic use of aluminium, the Australian industry was emerging as a force in the ally as a supplier of bauxite and alumina.

Australian resources of! bauxite and alumina werei now the base for about 14 per cent of the. Free World’s aluminium output, although Australia itself accounted for only about 1.5 per cent of world consumption. Mr Hibberd sa.d that if plans for new refinery capacity materialised and overseas sales of bauxite continued to grow, this proportion would significantly increase in the next few years. ‘‘Comalco’s outlook for the. decade is excellent." he said,; “and the year 1970 should be another of substantial I achievement.”