Third party bid for Pavroc increased

Press, 13 May 1981, Page 22

Third party bid for Pavroc increased

The third party in the bidding contest for Pavroc Holdings, Ltd. Christchurch roading contractor, has raised its bid for the 250,000 shares sought. The Christchurch sharebroker, Edgen, Wignail and Company, who last week announced standing in the market for this number at 225 c on a “first come, first served” basis, said yesterday that the offer had been raised to 245 c for each ordinary share and 160 c for each convertible note. The client had received a reasonable number of acceptances for the first onmarket offer, but was raising it in the light of the new 240 c offer from Fulton Hogan Holdings, Ltd.

The offer is unconditional, but extends only to the maximum of 250,000 shares originally sought, and it is expected that it will be withdrawn at close of business on May 22. Edgen Wignall say that the bid is being made in an attempt to bring to a head the present uncertainty surrounding the future of Pavroc Holdings, which is in danger of being split between two major groups of holders leaving minority shareholders in an unenviable position. They point out that the shares are probably at present considerably overvalued, and that after discussion with several larger holders they are confident of filling their order.