COMMERCIAL M. Nickless to continue to aid N.Z. transport

Press, Volume CXI, Issue 32563, 24 March 1971, Page 26

COMMERCIAL M. Nickless to continue to aid N.Z. transport

(N.Z. Press Association—Copyright) SYDNEY, March 23. Although the Mayne Nickless transport group will lose control of its affiliate, Allied Freightways, Ltd, if a merger manoeuvre succeeds, the group plans to retain control of another New Zealand offshoot, Armoured Freightways. Mayne Nickless holds a 51 per cent interest in Allied Freightways.

The managing director of Mayne Nickless (Mr R. C. Davis) said yesterday that Armoured Freightways would continue as a separate entity, under the control of the security services division of Mayne Nickless.

The Mayne Nickless equity in Freightways Express, Ltd, and Armoured Freightways is likely to be, in total greater than that hitherto held in Allied Freightways. However, the controlling stake in Allied would effectively be diluted as a result of the proposed merger with the New Zealand Express Company, Ltd, of Dunedin, he said.

Two weeks ago the boards of Allied Freightways and the New Zealand Express Company announced that they had agreed to recommend a merger of the two companies.

As announced, the merger would be achieved through a new holding company to be known as Freightways Express, Ltd. It was proposed that the company have an authorised capital of $3,000,000 in 50c shares, of which $1,850,000 would be absorbed in the merger. Major share If the merger was approved, more than 50 per cent of the shares would be held by New Zealand-domiciled shareholders.

Mr Davis said that on the basis of current profitably it was expected that a dividend of 121 per cent a year would be paid, with adequate profit retention.

The merger, in line with the undertaking given previously by Mayne Nickless, woud provide the New Zealand public with their first opportunity to participate in a f lly developed national transport group, and in the growth expected in the New Zealand transport field, he said. While Mayne Nickless would hold a minority inter-

est in the new company, it would continue to do everything possible to strengthen, and to add to, transport services to, from, and in both countries.

The links established in international air freight with the Maynair international air freight service would place the world market within 72 hours of New Zealand manufacturers, and the New Zealand sea service run jointly by Allied Freightways and Mayne Nickless would continue to provide swift, economical dopr-todoor distribution to manufacturers in both countries, Mr Davis said.