Amoil offer 17 cents

Press, 1 June 1978, Page 17

Amoil offer 17 cents

Details of take-over offers by Brierley Investments for the shares in Amoil, and its two subsidiaries, have been reported to the stock exchange. Amoil’s two subsidiary companies are Mining and Property Investments, Ltd, and New Zealand Pulping Mills. Amoil shareholders, who hold 500 shares or more will be offered one fully-paid Brierley share for every 10 shares in Amoil. Shareholders holding fewer than 500 Amoil shares will be offered 17c cash a share. Where a share holding is of more than 500 shares, and the holding is not divisible by ten, the odd shares will also be bought for 17c a share.

Mining and Property Investment shareholders who have 400 shares or more will be offered one Brierley share for every eight shares; the odd shares to be bought for 23c a share. The 23c offer will also be made to shareholders whose holding is fewer than 400 shares.

New Zealand Pulping Mills shareholders, holding 40 shares or more, will be offered five fully paid Brierley shares for every two Pulping Mills shares. Where shareholders have fewer than 40 shares or when the holding is not divisible by two, the offer is 400 c a share.

All offers will be unconditional. Brierley Investments has also advised the stock exchange of a memorandum to be forwarded to shareholders with the interim dividend on June 2. A meeting of shareholders is to be held on July 3, for the purpose of authorising the directors to issue up to! 100.000 ordinary shares of 50 cents each to institutional investors.

, “Shareholders will no; doubt be aware that the company is making share; :exchange offers for the capilt of Amoil, and its subsidiaries. Where the individual [anounts involve fewer than, a stated number of shares, a cash alternative has been ■offered and it is now proposed to place with in-, stitutions, the shares which | would have otherwise been! issued in this manner,” the memorandum says. “A full acceptance of the three takeover offers, together with the proposed placement requires about 500,000 shares, which will increase ,the issued ordinary capital of the company to 6.6 million shares of 50c each. The new shares will represent j 7.57 per cent of the 'in-1 creased ordinary capital. I

“Over a number of years it has been the proven policy of the board to issue equity (other than to existing shareholders) only very ! sparingly indeed, and this (Will ontinue to be so in the future. ; “On this occasion however the board is firmly of the [view that there is a very [ sound basis for offering the lopportunity 01 a share exi change to shareholders of [ these associated companies, and that there will be real benefit for the group as a whole. “The saving administrative savings alone will more than cover the additional dividend requirements, and other (economies of scale will im-j ! prove our effectiveness in j i several areas,” the directors | Isay.