Atlas buys Mainline shareholding

Press, Volume CXIV, Issue 33675, 26 October 1974, Page 15

Atlas buys Mainline shareholding

(New Zealand Press Association) AUCKLAND. I Atlas Majestic Industries. Ltd, has acquired the 49 per cent interest in Mainline Corporation of New Zealand, Ltd, from the receiver of ; Mainline Corporation, Ltd, and has the right to increase this to 59.1 per cent.

The amount of the tender by Atlas for the shares has not been disclosed. But, based on a price of about 55c a share — 5c higher than the current market value which is at par — Atlas would have paid about $327,000. Atlas now holds 595,000 of the issued 1,214,300, 50c shares of the company. The rest are held by the New Zealand public. Atlas also acquired the 300,000 options granted to the Sydney company. These are exerciseable at 70c a share between October 1,

1975, and September 30, 1977. Mainline earned a net profit of $194,604 in the year to June 30, but if half of the profit of the Fletcher-Main-line joint venture in the year to September 30, 1973, had been included, it would have been $219,958. Mainline has more than s4om of work in hand, including that by FletcherMainline. The chairman of Atlas (Mr C. A. Pearson) was likely to be invited to join the Mainline New Zealand board. Atlas Majestic Industries

has raised the interim dividend rate after a 21 per cent rise in group net profit for the six months to September 30. The unaudited profit was $47,000 higher at $270,000, the directors say in a short interim announcement. The interim dividend, raised from 5 per cent to 7j per cent (3 3/4c a share) is payable on November 1, exdividend October 16. In the last full year, Atlas Majestic increased net profit 84 per cent to $501,000. The total dividend last year was 15 per cent. Shareholders would receive a fuller interim report with their dividend cheques, Mr Pearson said.