Fletcher offers Firth 285c

Press, 2 December 1978, Page 17

Fletcher offers Firth 285c

Firth Industries. Ltd, has (received notice of a take- ' Over offer from Fletcher Holdings, Ltd, for the balance of ordinary shares not already held, being 1,882,148 shares. The- offer is one fully-paid Fletcher ordinary share plus 370 c cash for every two ordinary Firth shares. Fractional entitlements, will be paid for in cash at! 285 c a share. Alternatively; Fletcher’s will pay 285 c in cash for each Firth ordinary share. Fletcher shares issued ; under the offer will not qualify for the interim dividend payable in December, but the Firth shareholders will be entitled to receive the Firth interim dividend payable on December 20. The offer remains open I until January 31, and is con-!

ditional upon acceptances being received for not less than 90 per cent of the shares covered by the offer (1,696,134 shares) or a lesser number as may be determined by Fletcher’s, but not less than 429,368 shares, which would give Fletcher a 50.1 per cent holding in Firth. The offer is subject to the consents required under the Commerce Act. At yesterday's price of 205 for Fletcher shares, its cash and share offer values each Firth share at 287 c. The cash offer puts a value Of SB.2M on Firth Industries, which is 6.8 times the group’s net profit of SI.2M in the year to March 31. The directors of Firth have advised shareholders not to sell, pending their advice.