Partial bid opposed

Press, 14 May 1981, Page 18

Partial bid opposed

Four directors of Pavroc Holdings, Ltd, “strongly oppose” the 33.3 per cent firstcome, first-served offer made by the fifth Pavroc director. Mr C. L. S. Paterson, and David Lloyd Investments, Ltd, of Auckland. In a letter to shareholders, Mr T. J. Chamberlain, Mr D. S. Grinter. Mr P. D. Paterson, and Mr W. L. Singer, said that they opposed the offer “because on the information available to them considerably more than 33.3 per cent of shareholders were desirous of accepting the offer of Fulton Hogan Holdings, Ltd.”

Under such circumstances some of those shareholders would be “shut out” of the Paterson-David Lloyd Investments joint offer, if .they all wished to accept.The directors said the joint offer was expected to be mailed about May 16, and they recommend that shareholders reject this offer by doing nothing. At the same time, the four directors recommended that shareholders accept the new offer from Fulton Hogan Holdings, Ltd, when it was received on May 26. Fulton Hogan Holdings announced a new offer on Mon-

day, after its first cash takeover lapsed on; May 9 without reaching the ;50.1 per cent acceptance heeded to declare the bid unconditional. Three of the directors, Mr Chamberlain; Mr P. D. Paterson, and Mr Singer said that they, would accept the new Fulton offer in respect of their own holdings. Mr Grinter is not a shareholder in Pavroc.

The offer price (of 240 c an ordinary share and 155 c for each unsecured convertible note) was higher than the partial joint offer (of 235 c an ordinary share and 153 c a note) but more importantly the Fulton offer was for all the notes and shares with a minimum conditional acceptance of 35 per cent the directors said.

“Consequently it (Fulton’s bid) will be an equitable offer in the interests of all shareholders who desire to accept conditional only on the minimum acceptance qualification.