C.R.A. bids for A.M. and S.

Press, 7 August 1976, Page 17

C.R.A. bids for A.M. and S.

NZPA Melbourne The directors of Conzinc Riotinto of Australia, Ltd announced that C.R.A. proposes a merger with Australian Mining and Smelting, Ltd. C.R.A. will make an offer for the whole 26.5 per cent of the issued share capital of A.M. and S. which it does not already own. The offer will be on the basis of one 50c fully paid ordinary share in C.R.A. for every one 50c fully paid ordinary share in A.M. and S. If the offer is accepted by A.M. and S. shareholders, A.M. and S. will become a wholly-owned subsidiary of C.R.A., and the Rio TintoZinc Corporation. Ltd’s interest in the issued share capital of C.R.A. will fall from 80.5 per cent to 72.6 per cent. This reduction is in line with R.T.Z.’s policy of increasing the level of Australian ownership in C.R.A. as suitable opportunities arise.

The directors of C.R.A. believe that a consolidation of the interests of C.R.A. and A.M. and S. will bring a number of benefits to the shareholders of both companies and that. A.M. and S. shareholders will be in a position to benefit from the wide range of C.R.A.’s other businesses, while still retaining a significant stake in the future growth of A.M. and S. An entity will be created which wilfbe better able to develop existing businesses, and to undertake new ventures because of its greater financial strength, they say. The offer by C.R.A. to acquire shares in A.M. and S. will be subject to certain Governmental and other consents, and to the consent of the treasurer under the Foreign Take-over Act 1975. It is expected that the formal documents relating to the offer will be mailed to A.M. and S. shareholders during September.