Ceramco bids for MSI Corporation

Press, 29 November 1978, Page 22

Ceramco bids for MSI Corporation

Commercial

Ceramco, Ltd, has given notice to the directors of M.S.I. Corporation, Ltd, of its intention to make an. I offer for al! issued shares in I the capital of M.S.I. Corporation. 1 The offer is one Ceramco share plus 100 c cash for every two M.S.I. ordinary shares, and one Ceramco ordinary share plus 50c cash■ for every two M.S.I. jspecifled preference shares. ’ On yesterdays sharemarket the Ceramco shares sold for 190 c, putting a value of 145 c on each ordinary M.S.I. Corporation share, and 120 c on each; M.S.I. Corporation prefer-; lence share, including the; jcash portions of the bid. | The Ceramco offer values M.S.I. Corporation at about 518.5 M, or 6.9 times its

record profit of 52.7 M in the year to June 30. The directors of M. 5.1 .; Corporation have advised! shareholders not to sell their j shares, pending their advice! on the Ceramco offer. The Ceramco offer is con-; ditional upon acceptances j being received in respect of; not less than 90 per cent of; the total shares or much| ■ smaller number of shares as) Ceramco may determine, which shall not be less than: 25 per cent. The Ceramco shares) offered as part consideration ; will not qualify for the final' dividend for the year to March 31, 1979. Che offer is subject, to; : consent under the Commerce; Act, 1974 for which application has been made. The offer documents will be sent to M.S.I. share-

holders on or about Decemoer 13. The directors of Ceramco indicate their intention to ! increase the final ordinary : ! dividends to 11 per cent! making a total ordinary divi-, dend of 16 per cent for the! ;current financial year. They see substantial adi vantages for the share- ■ holders of both companies, particularly in the devel-; opment of common interest I in' the rapidly growingL.P.G. industry, and the rationalisation of engineering merchandising by both groups.

Mr A. H. Gould, who has been appointed to the board of the Mount Cook Group, Ltd. He fills the vacancy which has arisen from the resignation of the deputy chairman, Mr G. E. Bisson, of Napier, who has been appointed a Judge of the Supreme Court. Mr Gould is managing director of Pyne, Gould, Guinness Ltd, stock and station firm, and the president of the Canterbury Agricultural and Pastoral Association.