Elders, H. Jones merge
Control of Elder Smith Goldsborough Mort, Ltd. based in South Australia and Australia’s largest stock and station agent, is headed for Melbourne after it was revealed that the 19.9 per cent shareholding built up by Bell Group in last week’s bid was going to Carlton and United Breweries, Ltd, and that Elders would merge with Henr.y Jones (IXL), Ltd, to form one of the . biggest Australian companies. The CUB group has a 33 per cent interest in Henry Jones, and will end up with at least 26 per cent of Elders. The directors of Henry Jones and Elder Smith Goldsborough Mort announced yesterday that they had reached agreement for the two companies to merge. To effect the merger, which will lead to the formation of a group with assets worth more than SIOOOM,
Elders will offer one of its shares for each Henry Jones, ordinary share, with a 440 c cash alternative. The Henry Jones directors said that they expected the company’s after-tax profit for the six months to April 3. to be more than $11.5 million. They have agreed with the Elders board that in line with past policy an interim dividend of 50 per cent of after-tax profit will be paid to existing shareholders; this would mean a minimum interim of 12c a share. Henry Jones has about 45.9 million 50c shares on issue, which at the cash-alternative price of 440 c values the company at $202 million. At last balance date (June 30) net asset backing was 155 c a share. Elders has 52.3 million 100 c ■ fully-paid shares and 10.5 million 50c-paid shares. The net asset backing is 374 c a share. Henry Jones started
as a fruit, canning and jammaking co-operative in 1909 and bythe 1950 s was .Australia’s major fruit concern. Its interests now range from frozen foods to contract engineering, timber, hops, stockfeed, and country radio and television stations.
Elder s chairman (Sir Norman YoU.ng) who led the controversial fight against ■the bid by Mr Robert Holmes a Court’s" Bell L’Group, will resign at the end of the year to be replaced by a Henry Jones appointee.
Five Henry Jones directors will join the Elders board, among them the chairman (Sir lan McLennan) and the managing director (Mr John Elliott). Meanwhile. Elders shares remained suspended on Australian stock exchanges; Henry Jones also was not traded. Later in the day the shares were suspended by the Melbourne Stock Exchange.
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Press, 31 March 1981, Page 22
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409Elders, H. Jones merge Press, 31 March 1981, Page 22
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