L.W.R. offers a share-exchange

Press, 11 April 1978, Page 22

L.W.R. offers a share-exchange

| Lane Walker Rudkin InI dustries. Ltd, will issue 12 I fully paid ordinary shares of ' 50c each for seven preference shares of 200 c each. ; Fractions of shares will be j dealt with in the normal ’ manner by scaling up and down. The offer is conditional upon acceptance by the holders of not less than 90 per cent in value of the preference shares. The ordinary share certificates will be issued as soon as possible after the offer becomes unconditional. j The ordinary shares will ’rank equally with the existing ordinary shares and will I participate in the final ordiI nary dividend payable for I the year to June 19, 1978. j This dividend is usually payable in November. I ■ - ■ , ■ ■

The half-yearly preference dividend, normally payable on May 31, will be paid in full on acceptance of the offer.

The offer will remain open until May 1, but the directors reserve the right to extend this date.

The directors appointed Mr Hugh Beattie, a senior partner in Barr, Burgess and Stewart, to advise them about the offer.

Mr Beattie’s report says that the 12-for-seven offer represents a gain to the preference shareholders on the market price of their shares of between 44.6 per cent and 69.4 per cent and that the offer will increase preference shareholders’ income by 20 per cent on current dividend rates.

Mr Beattie says that the asset backing at June 19, 1977, (the last annual balance date) for each of the 50c shares in Lane Walker Rudkin was 236 c and that the 1977 ordinary dividend was covered 3.8 times.

“Preference shareholders, by acceptance of the offer, will, in addition be in a position to share in the future growth and prosperity of Lane Walker Rudkin Industries, Ltd. They will participate in future bonus issues, have the opportunity of taking up future cash issues, and there is the chance of capital gains when share prices rise,” say the directors.