Radio Pacific to pay 10p.c.

Press, 30 November 1978, Page 21

Radio Pacific to pay 10p.c.

| Commercial

The directors of Radio Pacific, Ltd, the new Manukau-based commercial radio station, expect to “comfortably pay a 10 per cent dividend” after its first year of operation, even allowing for all pretransmission expenses. They say this in the company’s prospectus for a public issue of 700,000 50-cent shares, released yesterday. Up to 200,000 of the shares are reserved for the 400 people who helped finance the company’s establishment. These shares will be issued at par. A further 500,000 are offered for public subscription at a premium of 5c a share, a total price of 55c each. The issue has been fully underwritten by New Zealand United Corporation Ltd. The issue will open at on Monday, December Of its authorised capital of $750,000 in 50c shares, the company plans for $400,000, plus $25,000 in share premimums, to be paid up by the time transmission starts in April, 1979. A total of $50,000 has al-

ready been subscribed by ( foundation shareholders, mainly directors. The directors are Mr Ralph Witten (chairman) a Howick businessman and Manukau City Councillor, Mr Brian Chamberlin (vice chairman) Auckland provincial president! of Federated Farmers. Mr Gordon Dryden (managing director) a broadcaster, Sir I Thomas Skinner, president of the Federation of Labour, Mrs Mira Szaszy, a former Radio New Zealand board member, Dr lan Scott, a( medical researcher. Mr Gor-( don McLauchlan, author and !public relations consultant,! (and Mr David Beatson, a j television current affairs specialist, who also becomes a senior staff member. In a statement with the prospectus, the directors say! Radio Pacific’s transmissionj will cover the greater Auck-j land area: about a quarter of New Zealand’s population. ' “In its main transmission hours,” they say, “Radio Pacific will provide that potential audience with a style of information programme that has already been| proved extremely successful ( and profitable in ’major over- j seas cities. “The company has been I

planned to be a successful! commercial venture from the I start of transmission.” And the directors say it will be the newest addition “to an industry which has already shown how sound management can produce both excellent profits and ! long-term capital gains while . still serving important social I and community needs.” . Apart from' the 800,000 shares which will be paid up by the start of transmission, 120.000 have been reserved at par for senior members ‘ of the station’s staff, and 80,000 have been reserved at par for a new organisation to( be called the Manukau Community Foundation, which will co-ordinate the station’s; community-involvement programme. “While establishing a pro(fitable radio station is the ! company’s first priority,”; says the directors’ statement, ; “the opportunity exists for! expansion in allied fields.” I And it mentions that the company “from its radio beginnings will be in an ideal position to take advantage of j the growth in other forms of (electronic communication, j “Its objects entitle it to |move, if opportunities arise,! I into television, tape and other!

i forms of electronic reproduction.” Although it was most unlikely that Radio Pacific would be granted stock exchange listing, brokers would be able to act in the forthcoming public issue, the president of the Stock Exchange Association of New Zealand (Mr M. P. Hay) has isaid. j He was clearing up confusion in broking circles, as several members of the stock cxcnanges believed they would not be allowed to handle their clients’ applications for shares. Mr Hay said the company’s articles of association were unatreprable to tee stock exchanges because they included a clause restricting holdings by any one person to 10 per cent, except with permission of the Broadcastring Tribunal. This went I against the principle of free (trading in any listed shares, unless restrictions were imposed oy law. The company’s managingdirector (Mr G. Dryden) said that the underwriter, NZ United Corporation, would establish a' market in the I shares. Radio Pacific would I broadcast the quotations.