Borthwicks issue no failure

Press, 5 August 1976, Page 16

Borthwicks issue no failure

PA Wellington The application by the British public for less than two per cent of the shares offered for sale by Thomas Borth-

wick and Sons, Ltd, might wrongly suggest that the com- ( pany's public flotation has been a failure, the New Zealand general manager, (Mr P. T. Norman) says. “The main purpose of the 'offer for sale was to raise about £9.5M of new capita! for Borthwicks, and since the offer was underwritten by a large number of financial institutions this objective has been achieved. “Borthwick’s underlying financial strength has been significantly' increased. The underwriting institutions have subscribed for those shares which the public did not wish to purchase so the company now has a substantial body of institutional shareholders.

“The lack of public interest in Borthwicks shares seems to have been due to poor conditions in the London stock market during the last few weeks,” Mr Norman says.

Die chairman of Borthwicks (Dr W. A. Bullen) says that the public response to the flotation did not in any way indicate an absence of faith in the future of the company. "The board has every confidence that Borthwicks, with the advantages of public listing, will continue to prosper and expand,” he says.

The company exports more than 20 per cent of all meat sold overseas bv New Zealand, and in recent years it has been particularly active in Iran and Iraq. Shares m Thomas Borthwick, opened at 66p on The London Stock Exchange on Tuesday. The shares have a par value of 80p,