S.O.F. recommends remaining offer

Press, Volume CXIV, Issue 33446, 30 January 1974, Page 23

S.O.F. recommends remaining offer

(Neu> Zealand Press Association) DUNEDIN, January. 29. The board of the South Otago Freezing Company, Ltd, has unanimously recommended shareholders in the company to accept the latest take-over bid from Waitaki Industries, Ltd.

Last week the Minister of I Agriculture (Mr Moyle) refused approval of a bid from the Southland Frozen Meat Company, Ltd. “The factors which mainly influenced my decision were the fact that the Meat Board, whose primary concern is the interest of the meat producers, was quite definitely pn favour of the original Waitaki proposition as against that of the Southland Frozen Meat Company, and that the board of directors of the South Otago Freezing Company itself was of the I opinion that from the farmers’ point of view the Waitaki proposal was the better,” Mr Moyle said in a statement released in Wellington. “Before deciding whether; or not I should give my ap-; iproval under the Meat Act to (the Southland Frozen Meat Company’s proposed take-j over of the South Otago j Freezing Company, 1 had; very full consultations with; all of the directly interested) parties,” Mr Moyle said. j In their statement to shareholders the S.O.F. directors said that, as a result of a decision of the minister, there was only one offer—that from Waitaki—which could proceed. “The decision of the Minister of Agriculture and the recommendation of the

I Meat Board, supported the ■'board’s earlier decision to ; agree to a merger of in- . terests with Waitaki Industries, the reasons for and ex- - planations of which were . set out for the information

lof shareholders and note-' 'holders in a statement from the directors on November 16. “The offer from Waitaki Industries to both shareholders and noteholders is; three fully paid shares in Waitaki Industries for each 100 c share and each 100 c note in the company and in addition a payment in cash of 10c for each share and note. "Based on a market price iof 198 c of shares in Waitaki' Industries, after allowing for the final dividend and the ■planned bonus issue to existing shareholders, the offer | represents a value of about 440 c for each share and note. “The directors unanimously recommended acceptance of the offer from Waitaki Industries and inI tend to accept the offer in ! respect of their own shareholdings.” the directors of S.O.F. say. Dalgety issue filled i Dalgety N.Z., Ltd, says; |that applications received exceeded the amount to be raised in the present share issue. The issue closes on January 31. and shareholders will be advised of their allot- j merits within two weeks of ' the closing date.