Bunting says 'no’

Press, 17 July 1979, Page 20

Bunting says ' no’

The directors of Bunting and Company, Ltd, say they have carefully considered the proposed offer from Scott Group, Ltd, and have formed the view that its terms are “totally unacceptable.” This opinion is made in a statement to shareholders included with the annual report of the company. “The directors are particularly concerned as to the market ability of the 49 per cent of share capital that would remain with the present shareholders as Scott Group are offering for only 51 per cent of the share capital,” says the chairman (Mr S. W. J. Harbutt). The Scott Group offer is 80c a share for 51 per cent of Bunting’s capital, provided that the proposal that the issue of 500,000 ordinary shares to H. W. Smith, Ltd, the Christchurch timber company, does not go through. However, in the notice to shareholders, Mr Harbutt, on behalf of the board of direc-1

tors, recommends that share-1 holders support the issue of! shares to H. W. Smith and* suggests that shareholders attend the annual meeting so : their votes can be exercised. “If a further notice of take-over was received that . put a realistic value on all the shares of the company, the directors would give further consideration to the matters referred to in para- ! graph three” (of the notice shareholders), which are the merits of the Scott Group offer, and the issue of shares to H. W. Smith, Ltd. In the annual report, Mr Harbutt says that the background and experience of H. W. Smith in timber and sawmilling, “will, we believe, be of great value to Buntings who have significant interests in this field.” On a different note, the dislocations associated with the relocation programme and rationalising of products are behind the company, and improvement in trading are I in evidence in the first quar-i

i ter of the new financial year, ! |Mr Harbutt says. l( The total trading loss in : the year to February 28 was i $123,257, compared with a , profit of $303,249 in the pre- ’ vious corresponding period. The loss was after extraordinary profits of $205,046 - ($105,558 previously), and was after providing $44,119 more for depreciation at $211,305, but $39,553 less for tax at $19,744. The directors do not recommend a final dividend, but an interim dividend of 2.5 c a share (5 per cent) was paid in November, 1978. Shareholders’ funds fell $183,903 to $3,138,069, in. eluding steady ordinary capital of $1,376,286, $8468 more for capital reserves at $208,245, but $200,539 less for revenue reserves at $1,541,117, before deducting minority interests. Working capital fell $748,255 to $1,280,189, and the current ratio declined ifrom 1.9 to 1.5 to one.