Colyer shares 120c

Press, 15 August 1978, Page 21

Colyer shares 120c

Colyer Watson Holdings, I Ltd. will issue 2.499.993 ordinary shares. 900.000 to | the public, at 120 c a share, says its prospectus. 1 tie firm processes, and' markets for export the byi products of the meat industry. Apart from the public |issue of shares. 999.993 have' {been reserved for allotment ito Waalimpe.x 8.V., 100.000 I have been reserved for company employees. The underwriting brokers, Francis Alli|son Symes and Co, have reiserved the right to nominate I the allottees of the remainling 500,000 shares. The issue will open on ! September 4, and remain open until September 29. 'unless subscribed in full earlier. The issue is being made to finance the purchase of all the shares in Colyer Watson land Co, Ltd. and to obtain a (sufficiently wide spread of shareholders to qualify the icompany for stock exchange (listing. Waalimpex BV, Rotter- ■ dam, is a wholly-owned subsidiary of the Barrow Hep-

. burn Group. Ltd. of the I United Kingdom, and ultim- > ately this company will hold , 1,000.000 shares, or 40 per cent of the issued capital I with the New Zealand public holding 1,500,000 or 60 per cent. Colyer Watson and Co. ' Ltd. has been a wholly- •' owned subsidiary of the Barrow Hepburn Group, since ) 1970. The total value of sales by - the New Zealand company; ■ last year, virtually all for I • export amounted to SSOM, ‘ and this represents about ’ • quarter of the total; exports of by-products. i The prospectus shows that i the profit for the half-year; , to June 30 was $478,592. and' I the board is confident that a; net profit of $650,000 for the > full year to December 31 1 will be achieved i An ordinary dividend rate a of 13 per cent (13c a share) I is expected to be maintain--5 ed, to give a dividend yield ■ of 10.8 per cent on the issue p ce of 120 c a share. On the predicted profit of, - $650,000 for a full year a -13 c a share dividend will:

'ake $325,000. giving a dividend cover of 2 times After providing for rhe' payment of preliminary ex- . peases the net tangible asset backing for each 100 c share in the company is 130 c. The directors are:— C. R. Pearce (Chairman); R. D. Somervaille (deputy chairman) of Australia; A 11. Avis (managing director): G. R. Odey. of the United Kingdom: S’. F. B. Heaton, of the United Kingdom: and J. B. Stevenson (solicitor). The company's head office is in Wellington It has free ; hold properties at Auckland, Levin, and Christchurch, and leasehold properties at Napier. Nelson. and Invercargill. A total of 146 staff' are >mr>loved In addition to a subsidiary company. Robert H. and Sons. Ltd. hide, skin and tal!1ow traders, acquired in 1972. Colyer Watson has a number of associated companies including:— New Zealand Portside Storage. Ltd. which is owned in partnership with Carig Mostyn, and Charles Ashton (NZ) il.td. anothe. tallow exporter