Offer for Gen. Fin.

Press, 18 February 1980, Page 20

Offer for Gen. Fin.

PA Wellington

The National Bank of New Zealand has made a $25 million offer for all the shares of General Finance, Ltd, the largest cash bid made on New Zealand stock exchanges. The offer will be made by Black Horse Finance, Ltd, in which the National Bank holds 51 per cent of the share capital and Todd Motors, Ltd, 49 per cent. ' The general manager of the National Bank (Mr Spencer Russell) said because of the uncertainty surrounding the future ownership of General Finance, considerable speculation had taken place in the shares of the finance company. Current share prices reflected the sharemarket’s expectations of a take-over offer. Before the unsuccessful 175 c a share offer by Transvision Holdings, Ltd, for General Finance in September, the market price of General Finance shares was 135 c. The latest price was 230 c a share.

The Black Horse offer would be for the whole of the issued share capital of General Finance at 230 c cash for each ordinary share in General Finance, the shares to be acquired free from all liens, charges, and encum-

brances, and with all rights attaching thereto, Mr Russell said. , This meant the shareholders in General Finance would be entitled to retain the final dividend of 12c a share already recommended by General Finance in the year Jo October 31, 1979. The offer would be conditional upon acceptances being received in respect of no fewer than 90 per cent of the to-tal-issued capital or a smaller number of acceptances, as Black Horse determined, down to a minimum of 51 per cent. It would also depend on the necessary consents being obtained from the Examiner of Commercial Practices on satisfactory terms and conditions and being available no later than March 20.

Three major shareholders, with a total of 61.4 per cent ■ of the shareholding had advised General Finance they would accept the offer. They were the National Bank of New Zealand, Ltd, 2,199,193 shares (20.1 per cent), New Zealand Motor Corporation, Ltd, 3,929,501 shares (36 per cent) and Cable Price Downer, Ltd, 585,937 shares (5.3 per cent). Mr Russell said the National Bank considered the acquisition' of General Finance would be in the best interests of both shareholders and employees of General Finance. It was intended the company would continue as a . leading finance house offering a full range of facilities,, and that the interests and security of employment for staff would be preserved.