Mot. Holds to pay 24 p.c.

Press, 22 November 1980, Page 20

Mot. Holds to pay 24 p.c.

Motor Holdings, Ltd, has| announced that it will pay a minimum dividend for the current year of 24 per cent; — compared with 18 per cent last year. Last week the company reported a substantial profit! increase and an increase in! the interim dividend from 8' per'cent to 12 per cent. . , Motor Holdings is in the I middle of a partial take-over; bid for Nissan Datsun Hold-! ings, Ltd. and the fact that; the; Motor Holdings share-i price has weakened after the' result seems to have prompted the announcement/; The directors said that: they “wish to make it clear that it is the intention to recommend at the end of the financial year a final dividend of at least. 6c a share (12 per cent), making a total! of not less than 12c (24 per cent).” ■' i

| Last year the company |i . raised its dividend from I’s. < : per cent to 18 per cent, butii J paid the final dividend oni ■ capital increased by a- one-|i for-three bonus issue, which!’ ■ made an effective rate for: :!the year of 21 per cent. F i, The Motor Holdings , I directors also added "that in i connection with the pro-!, (posed offer to acquire shares! (in Nissan Datsun Holdings j (for fash, or for cash plus a 1 :(• share in Motor Holdings, it' I will not involve the issue of I any new shares in Motor' i Holdings, or change in capi-! tai structure.” Motor Holdings lias suc- ■ needed in buying 13 per cent; , of'.Nissan’s shares, but has : run into several hitches. ; First, the 10 per cent, shareholder Nissan of Japan (has threatened to withdraw (the local company’s Datsun I ifranchise if control of the!

company changes, and secondly the Nissan Datsun (directors have refused to i register Motor Holdings shares which were bought I through nominees, - Motor Holdings is offering ! 305c a share, or 165 c in cash and one Motor Holdings share — worth 140 c, (according to Motor Hold-

ngs. The shares have bee: selling this month betweei 157 c and 176 c.