Brierlev and John Burns agree

Press, 3 July 1979, Page 23

Brierlev and John Burns agree

’ Auckland A meeting on Friday of the chairman and advisers of John Burns and Company, Ltd, and the substantial shareholder, Brierley Investments, Ltd, enabled the two parties to resolve their recent differences over the rights of preference shareholders. Messrs G. R. 1 Brabant and R. A. Brierley talked for about 20 minutes and, although this delayed the start of the special meetings of shareholders called to consider the capital restructuring of Burns, that discussion resulted in the meeting’s carrying out action to the satisfaction of all sides. The Burns’ directors succeeded in obtaining approval for their resolution that a 50 cent tax-free dividend to ordinary shareholders be declared in ■ accordance with the plan to return proceeds of the group’s reconstruction. The preference, ordinary and general shareholders meetings were all in turn adjourned on a show of hands after it was agreed to hold over the scheme

put forward earlier to shareholders to implement the balance of the proposed reconstruction programme. It now is intended the

scheme will be brought forward in an amended form, on a date to be fixed by the directors after it has been considered by the Supreme Court. The reason for the deferment is that the Burns board has made a proposal to the Brierley board (Brierley holds about 25 per cent of the Burns capital) which would involve a payment in July, 1982, of 100 c for each specified preference while maintaining the conversion rate then at six 100 c prererences for five 50c ordinaries instead of three-for-five as was intended under the scheme. The dividend on these preferences will be increased. as announced previously, from 12 to 14 per cent.

No alteration is proposed in the payments and benefits to ordinary shareholders.