Bonus Issue By Ballins

Press, Volume CX, Issue 32393, 4 September 1970, Page 18

Bonus Issue By Ballins

Ballins Industries, Ltd, will make a bonus issue of one for five from capital reserves.

In making the announcement, the chairman (Mr N. W. Millner), said that the directors considered it an opportune time to distribute part of the shareholders’ substantial capital reserves by way of a scrip issue, and that shareholders would thus participate directly in the capital growth of the company. Mr Millner said that the directors expected to recommend a total dividend for the current year of 124 per cent, and, although the profits from a number of recent acquisitions of the company in the North Island would not be fully reflected in the current year’s accounts, the directors were hopeful that the company would be able to maintain this dividend rate on the increased capital next year, provided normal trading conditions prevailed. The new shares will be issued on the basis of one share for every five held at the close of business on September 30, and they will rank for dividend from October 1. The recent cash issue of shares made in April will qualify for this bonus issue. Taking into account present issued capital, and obligations to the vendors of certain recent acquisitions by the com-

pany to convert part of the purchase price to shares, a total of about $3,402,000 will qualify for the bonus issue. This will require the capitalisation of about $680,400 from capital reserves. Confirmation has been obtained from the Inland Revenue Department that the proposed issue from these reserves will be free of tax in the hands of shareholders, and it will not be taxable to the company. A general meeting of shareholders to approve the directors’ proposals will be called for September 28. Mr Millner also announced today that the directors propose to make a further public issue of debenture stock early in 1971. The issue will probably be for slm, with the right to accept over-subscriptions up to an amount yet to be determined. Interest rates will be at competitive levels, and it is proposed that debenture moneys may be paid in two instalments at an interval of six months.

The proceeds of the debenture issue will be used to finance the further development of the company. The company has already acquired a number of wine and spirit companies in the North Island.