Pavroc bid

Press, 12 May 1981, Page 18

Pavroc bid

Fulton Hogan Holdings; Ltd, the Dunedin-based road and transport group, yesterday made a new offer for Pavroc Holdings, Ltd, the Christchurch road contracting company. The new cash offer is 240 c for each 100 c ordinary share and 155 c for each 13 per cent unsecured convertible note. Fulton first announced a take-over bid for Pavroc on December 23, but this finally lapsed on Saturday without the offer being declared unconditional. During that time Fulton revised its original offer from 175 c to 225 c for each ordinary share and from 117 c to 150 c for each note.

The chairman of Fulton, Mr I. F. Farrant, said that the new offer applied to 100 per cent of the capital of the company, but excluded any interim dividend that the company might declare ’if one was paid. In contrast to the previous bid, however, the new offer

could be declared unconditional at 35 per cent of the ordinary capital. This was an acceptable minority holding which was effective. Fulton would be able to make a substantial contribution to Pavroc’s business at this level, Mr Farrant said. The new offer would be dated from May 26, and cash would be paid to those shareholders who accepted the offer seven days after the bid became unconditional. The offer was open for one month. The new offer was an equitable one as it applied to all shareholders and not one section, Mr Farrant said, alluding to the 33.3 per cent first-come, first-served offer made by Mr C. L. S. Paterson, a Pavroc director, and David Lloyd Investments, Ltd, of Auckland.

The Pavroc shareholders who had accepted Fulton’s previous offer were now free to decide about the new bid, Mr Farrant said.