Kaiapoi bid prospers

Press, Volume CXII, Issue 32998, 18 August 1972, Page 1

Kaiapoi bid prospers

(New Zealand Press Association)

DUNEDIN, August 17.

In its take-over bid for Kaiapoi Textiles, Ltd, Mosgiel Woollens, Ltd, has now received acceptances from just on 75 per cent of Kaiapoi shareholders. This was reported today by a spokesman for Mosgiel Woollens.

“Since the offer was made at the end of June there has been unusual activity in the shares on the stock exchange and several hundred thousand have been bought and sold.

"All these transfers have not yet been processed. We have been in touch with all major shareholders and they have either accepted or indicated their intention of doing so before closing date," the Mosgiel spokesman said. While Mosgiel’s spokesman made no further comment it now seems apparent that the

take-over offer will be a success.

It is a reasonable assumption that those who purchased shares on the exchange did so with the intention of accepting the offer.

Mosgiel is insisting on 90 per cent acceptances before the offer becomes unconditional but closing date is not until Monday next at 5 p.m. and the company also has the power to extend the time of the offer if it wishes to do so. The offer is worth 20c in cash and 23c in 3 per cent debentures for each stock unit, but the shares have been selling on the Stock Exchange for 38c and 39c.