Fletcher to make 1:6 issue at 125c

Press, 6 August 1976, Page 14

Fletcher to make 1:6 issue at 125c

Fletcher Holdings, Ltd, intends to make a one-for-six renounceable rights issue of 100 c shares at a total price of 125 c. The issue is attractive, with the theoretical value of the rights working out at 118 c, and the shares averaging down to 243 c — based on the latest sale price of 263 c. Fletcher shares yesterday rose 1c in anticipation of the issue. Other terms of the issue ARE AS follows: (1) Entitlements to be

determined as at 5 pan. on September 30, and documents to be mailed on October 8. (2) Payment to be received in full by November 12. (3) The new shares will rank in full for the final dividend for the year ended March 31, 1977, (payable in August, 1977, on normal timetable) but there will be no entitlement to the interim dividend for the 1976-77 year, normally payable in ' December, 1976.

(4) Register of members will be closed from October 1 to October 8 to determine entitlements. Shares will become ex rights on September 28. The issue will raise about $5.3M, and will increase Fletcher’s capital to about $29.»M. The share premii|m account will be increased by about SIM. The directors say that they expect that the current rate of dividend will be maintained on the increased capital, subject to the provisions of the Companies Limitation of. Distributions regulations. .4. ‘ *• * •