Motor Traders poll favours issue

Press, 6 March 1978, Page 14

Motor Traders poll favours issue

The poll taken of shareholders in Motor Traders (N. Z.), Ltd, on the proposal to make a share issue to BorgWarner (Australia), Ltd, has resulted in 75.3 per cent voting for the move. But, the result is still provisional said the chairman of Motor Traders, (Mr C. A. Staples). A final result is expected to be announced later this week. “The issue is still in doubt because of questions raised about the validity of certain voting authorities,” he said. The poll was forced by some shareholders at the extraordinary meeting on February 17, who objected to the proposal because they said that the intended price of the shares to be offered Borg-Warner was too low when measured against Motor Traders’ assets.

They refused to accept the vote taken on a show of hands.

The motion calling for a poll was put by Mr T. J. Beyer, representing United N.Z. Nominees, Ltd, and South Pacific- Merchant Finance, Ltd, two companies connected to Brierley Investments, Ltd, and was supported by representatives of Bowring Burgess,- Ltd, as nominees and Commercial Union Assurance Company, Ltd. The proposal still in abeyance is that Motor Traders, as a diversification step, offer Borg-Warner, 1,657,686 50c ordinary shares which would make 24.9 per cent of Motor Traders issued capital, at a premium of 86c a share. At the meeting Mr Beyer, in response to a question from Mr Staples, said he thought the price should be not 86c but 110 c a share. No mention was made of Motor Traders ’calling a further meeting of shareholders by Mr Staples when the result was announced.