REBUFF FOR PROP. SEC.
D.F.I. compares earnings The directors of the Dominion Farmers’ Institute, Ltd, have promptly advised against acceptance of the first-come, first-served offer for a 40 per cent interest in the company by Property Securities, Ltd. Property Securities offered one of its shares for five A 30c fully-paid shares and two shares for seven B 50c fullypaid shares.
The directors of Dominion Farmers, say the comparative values of the offers, based on latest published accounts, are: One share for five A shares (Property Securities figures in parenthesis)—earnings 16.75 c (14.71 c dividend 12c (10c), net tangible assets $2.85 ($1.30).
Two shares for seven B shares provides earnings of 39.10 c (29.42 c dividend 28c (20c), net tangible assets $6.65 ($2.30).
The market value of Property Securities shares at $3.70 is not sustained either by earnings, dividend or asset backing, the directors of Dominion Farmers’ say.
“On a price of $3,70 the shares are only earning 3.92 per cent and the dividend is only 2.70 per cent a share.”
Murumba-Bounty
Murumba Oil, N.L., proposes to offer, when annual balance-sheets are completed, one 50c fully-paid ordinary share for every seven 10c fully-paid Bounty Oil, Ltd, share and one option to acquire one 50c Murumba share for every seven options in Bounty. Murumba has already exchanged 3,228,364 of its 50c shares for 22,598,548 Bounty shares.
Quotations of Bounty are reinstated in New Zealand.-— (P-A.)
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Bibliographic details
Press, Volume CXII, Issue 32977, 25 July 1972, Page 16
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233REBUFF FOR PROP. SEC. Press, Volume CXII, Issue 32977, 25 July 1972, Page 16
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