Feltex seeks more of H. and P.

Press, 9 May 1981, Page 18

Feltex seeks more of H. and P.

PA Auckland Feltex New Zealand, Ltd, has unveiled a bid worth about $10,250,000 to increase its present interest in the timber group, Henderson and Pollard, Ltd, to a controlling 55 per cent of that company's capital. At present, Feltex holds a . 23 per cent interest in Hen- . 'derson and Pollard, bought • around the middle of last year. Feltex is offering 475 c cash for Henderson and Pollard's ordinary shares and 365 c for its specified preference shares. I These prices compare with [ sharemarket sales before the offer of the ordinaries at 390 c and the specified preferences at 270 c. j The move has yet to gain I the approval of the directors 1 of Henderson and Pollard. Yesterday, they issued a statement to shareholders suggesting that they take no action to dispose of their shares at this stage. They say that the offer will be considered by directors, and that a formal recommendation to shareholders’ will be made.

In total, Feltex is seeking 2,018,593 ordinary shares and 179,002 specified preference shares in Henderson and Pollard. The offer has been posted out to all shareholders. The offer by Feltex is in line with that company’s recent policy of concentrating its development into what it sees as growth areas. It has an interest in a further furniture manufacturer, Airest Industries, Ltd, and is keen to develop its activities in the furniture component field. Recently, Feltex acquired sawmilling interests in Southland. Henderson and Pollard’s strength lies in the high quality of its wood resources. Its’profits in recent years had been hampered by its share of the losses of the Kumeu particle board mill, but after the sale of this interest to N.Z. Forest Products, Ltd, earnings have soared. Last year, Henderson and Pollard’s profit jumped from $1,010,000 to $1,788,000. In the latest six months to October 31 profit rose. 74'per cent.