Odlins top rate 11%

Press, 14 September 1976, Page 24

Odlins top rate 11%

Odlins, Ltd, Wellingtonbased timber and hardware group, has filed the prospectus for an issue of $2,500,000 secured debenture stock, paying a top rate of interest of 11 per cent for the 7 and 10 year terms. Three-year debentures attract interest at 9J per cent, with 10{ per cent for the five-year term. The company will not accept over-subscriptions. In his statement included in the prospectus the chairman (Mr Huia Hill) says that the purpose of the issue is to consolidate the company’s strong financial position and to provide additional working capital to maintain the growth and expansion of the group. “The most recent development has been the merger with Zip Holdings, Ltd,” Mr

Hill says. “The integration of Zip with Odlins — which already includes among many other activities the old established paint, glass and wallpaper business of R and E. Tingey and Company, Ltd — will mean that the group will now cover every aspect of building supply including property development in land and housing.

“It is intended that the Zip organisation as such will continue meantime to opeate as at present. Undoubtedly there will be opportunities for integration and rationalisation resulting in beneficial co-operation between the various centres of activity within the group. “This combination already has an • annual turnover exceeding $85,000,000 and provides employment for more than 2500 employees. I am sure the result of this latest merger will be a strong and

progressive organisation which will be even better placed to service the requirements of the building industry which plays a vital role in the well-being of the nation’s economy,” Mr Hill says.

The auditors report shows that the total stock on issue at the maximum of $2,500,000 will be secured against tangible assets equivalent to $4lB for every $lOO of stock. The cost of the issue is estimated at $BO,OOO. The trustee for the debenture holders is Trustees Executors and Agency Company of New Zealand, Ltd.

The issue is underwritten by Daysh Renouf and Company, and New Zealand United Corporation, Ltd. It will remain open until March 8 unless earlier subscribed or closed by the directors.