I.E.L. bids for farmer firm

Press, 26 January 1979, Page 11

I.E.L. bids for farmer firm

I NZPA Sydney I Industrial Equity, Ltd, has I made a SIOM take-over bid: for the Winchcombe Carson, | Ltd. Australian stock and - station agent. I.E.L. already owns 20.72 | per cent of the group’s j issued capital, and plans to j offer 82c a share for the re-1 jnaining equity. Shareholders who accept /will also retain Winchcombe 'Carson’s interim dividend, -which is due in March, and j I.E.L. anticipates that an in- ; creased interim dividend of 1 13 c a share (2c previously) I will be paid. This will bring | the effective value of the | takeover offer up to 85c a ''share, or a total of SIO.IM, | When contacted last night, ! Winchcombe Carson's managing director (Mr I. H. I iWrigley) said that he could, II not comment on the pro-: (posed takeover at this stage. ( i In the year to June 30.1 I Winchcombe ' Carson re- ( I corded a two per cent fall in I 'net earnings to $845,000.1 i However, a continuation ofii

the better w-00l and live-; i stock prices experienced to- | wards the end of the period | should contribute to imI proved earnings. The group i releases its interim results [next month. j The chairman of I.E.L. (Mr R. Brierley) said: “We I are aware that recent sales I on the stock exchange have been at levels in excess of 82c, but we nevertheless firmly believe that the price offered is a very full and; fair one. “Under normal circum- ( stances, and in the absence ; of purely short-term spe-' culative influences the; amount which shareholders could expect to receive for; their shares oir the open! market would be consid-1 lerably below our offer price. [ “The traditional pastoral i agency business of the com(pany, and its various subsi-1 (diaries would combine very; suitably, and economically! with the I.E.L. group of; companies,” Mr Brierley! I said.