Commercial 'Do nothing' says Am. Batteries

Press, 17 January 1979, Page 18

Commercial 'Do nothing' says Am. Batteries

The directors of AmaigaI mated Batteries, Ltd, have 'formally rejected the take- • over offer-by Motor Traders, Ltd. The offer is ■ “totally ini adequate,” they say. M.T.L. -offers 220 c for (each Amalgamated Batteries ! ordinary share, 150 c for the cumulative prefs, and 135 c 'for the specified prefs. I The directors of Amalgamated Batteries will not i accept in respect of their, own holdings and recommend shareholders to “do (nothing.” Shareholders will benefit: {more by holding their shares] j than accepting the offer, (they say. “Shareholders’ funds, as : shown in the balance sheet, are $470,483 more than the total offer, and this can be increased by $237,058 to

bring land and buildings to current Government valuation. “The total offer values the company at 5.88 times its 1978 net earnings. This is lower than any other recent bid in relation to other] listed companies. These have varied from seven to ten times the profit,” the formal] advice says. “For the four months to! December 31 turnover in-: creased by nearly 14 per cent on the previous corresponding period. “Export sales have shown!

a substantial increase, and a recent order in excess of: $200,000 appears to indicate another record export year.: The Fijian subsidiary has! ;also reported considerable improvement. I “Production of batteries has risen by 48 per cent in (the first*four months. “Shareholders will remember that the capital expenditure programme, under-] taken some two years ago, is only now beginning to in- • crease profits,” the directors (of Amalgamated Batteries i say.