F.A.C. chairman on take-over bids

Press, Issue 32535, 19 February 1971, Page 16

F.A.C. chairman on take-over bids

(New Zealand Press Association) HAMILTON, February 18. The Farmers’ Co-operative Auctioneering Company, Ltd, had carefully considered the proposed take-over offer of R. A. Brierley Investments, Ltd, the chairman of F.A.C. (Mr S. A. Rhodes) said today.

The offer now before the board of directors was that of the North Auckland Fanners’ Co-operative, he said.

Mr Rhodes was replying to remarks made by the chairman of the Brierley group (Mr R. A. Brierley), who said that his company had no intention of withdrawing from the take-over battle. There was no connection between Brierjey’s proposed offer and the offer of Merchant Finance and Investment, Ltd, which had already been withdrawn, Mr Rhodes said.

A condition of the N.A.F. offer, which could not be waived, was that there had to be acceptance by at least 75 per cent of the ordinary shareholders, otherwise the offer lapsed. The condition I clearly placed the decision on whether the company was taken over or not in the hands of a substantial majority of ordinary shareholders, he said. The F.A.C. articles had always had a provision to limit the maximum number of votes of any one ordinary shareholder to 250. The amendment now proposed was to ensure that the intentions of the articles would not be avoided by the use of nominees or some other method. The proposed amendment to the articles was announced before Brierley I Investments made its first offer and had the support at the time of Merchant Finance land later N.A.F., said Mr Rhodes. N.A.F. had offered ordinary shareholders two alternatives —33oc for each ordinary share, or one N.A.F. ordinary share and 155 c cash for each F.A.C. ordinary share.

Motor Specs, deb. issue

(N.Z. Press Association) WELLINGTON, Feb. 18. Motor Specialties Industries, Ltd, Auckland, is offering a top interest rate of! 8 per cent in a sl.sm debenture issue opening on Mardh 1. The minimum rate (for three years) is 7 per cent. This is the first major industrial company to take interest rates to this level, and the high rates reflect a tighter supply of loan money. Proceeds of the issue will be used in the general expansion of the company. Interest rates are:

3 years, 7 per cent. 6 years, 7) per cent. 9 years, 7| per cent. 12 years, 7) per cent. 15 and 20 years, 8 per cent. There is no right to accept over-subscriptions. Suckling div. up Suckling Bros, Ltd, Christchurch footwear manufacturer, has increased its dividend from 11 to 121 per cent with a final 8J per cent payable on March 26.