Tolley shareholders agree to proposal

Press, Volume CXII, Issue 32902, 28 April 1972, Page 15

Tolley shareholders agree to proposal

(New Zealand Press Association)

WELLINGTON, April 27.

The proposal by the directors of Tolley Holdings, Ltd, to increase authorised capital from $1,600,000 to $4,000,000 was overwhelmingly supported by shareholders at a meeting today, despite strong criticism from several shareholders.

The purpose of the increase is to enable the issue of 485,504 100 c shares to Canada Wire and Cable (Internation), Ltd, to acquire that company’s minority interest in Tolley Industries, Ltd, the group’s operating company.

Moving the proposal, Tolley Holdings’ chairman (Mr F. L. Parkin) said that the proposed share issue would cut Canada Wire’s share of group profit from 48.2 to 45 per cent. The managing director (Mr B. H. Tolley) said the move would remove management problems in the operating sector.

One shareholder said that the price being paid was exorbitant and that if the assets were worth a 55c premium a share, then they should be revalued. The 19 per cent loss in voting power to Canada Wire would never be regained, he said. ’ Another said that he thought that shareholders had not had a fair and reasonable deal over the years. But the group financial controller (Mr E. F. Stewart) said that the main point was not asset value but the prospect of greater profits for shareholders other than Canada Wire, and this would continue in perpetuity. About 30 shareholders at-

tended the meeting and the proposal was passed by 882,974 votes to 6:35. Proxies for 680,819 shares had been received.