Fletcher has 45% of Carter

Press, 2 April 1980, Page 26

Fletcher has 45% of Carter

Fletcher Holdings, Ltd, and friends, now have 45 per cent of the capital of Carter Holt Holdings, Ltd, after special sales on Monday of 6,013,596 Carter shares. The buyer was described; by Fletchers..; yesterday as “an independent party.” Fletchers is known to hold 23.6 per cent of the Carter Holt capital in its own right. The takeover bid came as a bombshell, to Carter Holt. No discussion took place before the offer, said one of the joint managing directors of Carter Holt, Mr R. H. A. Carter.

He said that major institutions which had had a close relationship r.with the company, had been influenced to sell their shareholdings to Fletcher. “I am concerned at the implications associated

with the method,” he said.: “This could happen' to any ( company.” The Carter Holt board will; meet today, and will make a ; statement afterwards. i It is understood that alii the major institutional share-' holders in Carter Holt have! sold to Fletchers. Among the big holders are the A.M.P. Society, which held 10 per cent of the capital at January 8, CML Assurance Society (8.9 per cent) and the Gov- ' ernment Insurance Commissioner (9 per cent). -"i-. Fletcher’s offer is one of its shares plus $9.25 cash for every three Carter Holt shares. The new shares, would rank for a 10 per cent! final dividend payable in j August, and for the one-for-three bonus due in May. This;

values each Carter share at 425 c.

Fletcher has produced cal-1 culations showing that by i accepting. Carter Holt shareholders would obtain an im-( mediate capital gain of $1.20, ( and an immediate increase in annual income of 64 per cent.’ The take-over bid required the consent of the Examiner of Commercial Practices; Fletcher requested this on Monday. Fletcher seeks acceptance of a minimum of 90 per cent of the Carter Holt capital but reserves the right to reduce the requirement to 50.1 per cent.

Yesterday a further 61,200 Carter Holt shares changed hands on New Zealand stock exchanges at the bid price of 425 c; 19,500 Fletcher shares were sold at 350 c each —un-

changed on the day before. Within less than,a day, Fletcher’s SSM 151 per cent debenture issue appears to be fully subscribed. The organising brokers, R. A. Jarden and Company, said that : they had received firm reservations and subscriptions 'from members of the New Zealand Stock Exchange for the full amount. An additional SSM is allowed for oversubscriptions in the prospectus, which has a closing date of September, 1980. It seems likely the issue will close well before that date. The net proceeds of the issue will be used. to refinance local and overseas loan maturities falling due in the ■'period to September 1980, (and to finance a higher level lof business activity.