Resistance to bid by Collingwood

Press, 5 December 1979, Page 28

Resistance to bid by Collingwood

Indications are that a number of major shareholders in Schofield Holdings, Ltd, will not accept the takeover offer from Collingwood Holdings, Ltd, the Schofield directors say in their half-yearly report. Unaudited group net profit for the six months to September 30 of $157,743 was $14,620. or 8.5 per cent, less than that for the 1378 period. Tax provision was $12,597 lower at $80,972. The directors say that the half-year result is in line with the indication in the last annual report that the 1979-80 year was unlikely to be quite ias profitable as last year’s record earnings of $384,486. The Collingwood takeover offer is conditional on an interim dividend not being declared. The declaration of an interim dividend is therefore being deferred until the board has had an independent I

■appraisal of the merits of the proposed takeover scheme. The directors will make a recommendation to shareholders, and consider the declaration of an interim dividend before December 20. In the last full year the dividend was raised from 9 per cent to 12.5 per cent (12.5 c a share). In the last annual report, ■ the chairman (Mr D. H. I Steen) said the serious position arising from the oil ■ crisis, the economic situation and the prospect of higher car prices indicated lower [sales. However, the company should be able to maintain or probably increase its share of the market with the arrival of the Holden Commodore. Collingwood Holdings Ltd, a franchise holder for Chrysler, Hillman and Mitsubishi cars is to make a cash offer

for Schofield Holdings, Ltd. ■ which has had a franchise association with General Motors for about 60 years. Collingwood Holdings was listed a year ago after the takeover of Allied Group. Ltd. It reported a $109,518 profit in the five months to balance date March 31, and $146,166 in the half-year to September 30. Paid capital is $1,500,000. A director of Collingwood Holdings, Mr P. H. Masfen, said he did not see any difficulties in reconciling competitive franchises. The figure of the motor vehicle industry would see some rationalisation and multi-franchis-ing could become more common, he said. The chairman of Schofield, (Mr K. G. MacCormick) said he would not comment on the offer until it had been discussed by the directors early next week.