N.A.F. reports higher profit in formal bid

Press, Volume CXI, Issue 32539, 24 February 1971, Page 20

N.A.F. reports higher profit in formal bid

(New Zealand Press Association)

AUCKLAND, February 23. North Auckland Farmers’ Co-operative, Ltd, of Whangarei, earned a group net profit of $125,000 in the six months to December 31. On an annual basis this is an increase of 13 per cent on the record $221,428 earned last year, the directors said in their formal take-over bid fori Farmers’ Co-operative Auctioneering Company, Ltd, of Hamilton.

The parent company’s profit for the half-year was ; 588,000 —an increase of 29 ; per cent on an annual basis. i The directors considered i the profit “very satisfactory,” 1 but they said that the in- i crease may not be maintained i because of higher salaries i and costs. Nevertheless, on present trends group profits for the full year are expected to show an increase.

As announced, the NAF bid is 330 c cash for' every FAC ordinary share or one NAF share plus 155 c cash.

The offer is subject to 75 per cent acceptance by March 31.

The latest date on which NAF can declare the offer unconditional is June 19. The shares to be issued in the take-over will rank annualy with existing NAF ordinary shares, but will participate only in one-quarter of the dividend—forecast to be maintained at 10 per cent for the year to June 30 next

NAF directors said that they intend to carry on the business of FAC as a corn l pany in its own right Some reorganisation will no doubt prove necessary, they said, but the basic business of FAC as a stock and station agency company will be strengthened.

With a history of strong growth over the last eight years, NAF believes it can improve the performance of 1 FAC to the mutual benefit of present NAF shareholders, i and those FAC shareholders I accepting the share plus i cash alternative.

NAF intends to reconstruct the FAC board, but will ensure representation of Waikato shareholders.

The existing FAC rebate scheme to shareholders will be carried on in some form appropriate to the new constitution of that company.