A.B. Consol bids for Coffee and Spice

Press, 28 July 1976, Page 18

A.B. Consol bids for Coffee and Spice

A.B. Consolidated Holdings. Ltd, is continuing to in the food indusi try by making a take-over {■bid for Christchurch-based '(N.Z. Coffee and Spice Company, Ltd. The company announced yesterday that it was offering 310 c for each of 80,000 issued ordinary shares and 100 c for each of the 10,000 issued preference shares. The offer, which involves a cash outlay of $258,000 by< A.B. Consolidated, will be mailed to N.Z. Coffee and; Spice shareholders on Fri-I day. In a statement, a director! of A.B. Consolidated (Mr R. J. Binning) said that the directors of N.Z. Coffee and Spice had already unani-l mously agreed to recom-j mend the take-over to shtte-i holders. The offer is subject to ac- j ceptance of a minimum of I 40.000 ordinary shares.; Under the terms of the Com- : merce Act. 1975. approval of! the Minister of Trade and! ; Industry is also required. Mr Binning said that it was intended that the busi-| ness of N.Z. Coffee and. Spice would continue to. operate from existing prem-1

jises under present manageiment. ( The N.Z. Coffee and Spice J was formed in 1916 and 'handles the production, 11 packaging and distribution of .! coffee, icing sugar, dried j fruits and nuts. Main brands i are Belpak and Trents. The company’s main preJmises are in Christchurch. iand a warehouse is located Jin Auckland. ■ “The move is a further I stage in our planned diversi- ! fication within the food in(dustry,” said Mr Binning. ' “Both boards of directors bejlieve that the technical, financial. marketing and distriIbution assistance available I from A.B. Consolidated will j assist N.Z. Coffee and Spice 'to achieve improved profitlability and expanded turnlover.” ( A.B. Consolidated is ali ready involved in the production and marketing of j biscuits, chocolate and con(fectionery, snack foods, and [flour. I Through its acquisition of !Asparagus, Ltd. recently it (became the owner of New ; Zealand’s largest apple orchard. N.Z. Coffee and Spice is (an unlisted public company 'on the New Zealand Stock I Exchange.