Marac premium issue

Press, 6 December 1979, Page 25

Marac premium issue

Marac Holdings Limited, will make a one-for-four (rights) issue to shareholders, at a premium of 70c. The issue will raise $4,250,000 and will increase the company’s capital by 52.5 M to 512.5 M. Marac’s managing dir-

ector (Mr J. D. Rose), said that the directors had decided to increase the company’s capital to ensure there was the necessary equity base to support planned operations in the next financial year. “The premium level has been set with a view to en-

hancing the company’s ability to pay tax-free dividends to shareholders from share premium reserve,” said Mr Rose. “Apart from unforseen circumstances, it is the directors’ intention to pay future dividends on all shares at an annual rate of at least 17 per cent,” Last year’s total dividend was 16 per cent. The new shares will not participate in the dividend which normally would be payable next July, but will participate fully in the div-

idend which normally would be payable in January, 1981. The allocation of fractions and any shortfall will be at the directors’ discretion. Payment in full will be required by March 14 next year (renunciations by March 21), ex bonus December 11. Marac shares last traded at 205 c, at that price the theoretical value of the rights would be 7c, and the shares would average down to 198 c.