Voting on merger

Press, 24 June 1981, Page 23

Voting on merger

PA Sydney Shareholders in the Consolidated Gold Fields of Australia, Ltd, group will be asked to approve the company reorganisation tomor-- ; row, but according to Mr Russell Lander, deputy chairman on the Australian Shareholders’ Association,

the Mt Lyell Mining and Railway Company, Ltd, contributing shares are undervalued in the proposed share and cash exchange. In a letter to the Mt Lyell chairman, Mr Lander said the proposal to be put to the meeting of shareholders in Melbourne values the partlypaid Mt Lyell shares at about 102 c instead of about 143 c, the 218 c a share value of the ordinary shares less the 75c uncalled capital. He said the association believed the partly-paid shares should be based, on 'the value applicable to fullypaid shares, with an adjustment for uncalled capital

Shareholders of the tin miner. Renison, Ltd, meeting in Melbourne, and Associated Minerals Consolidated, Ltd, and Consolidated Gold Fields Australia, Ltd, meeting in Sydney, will be asked to approve the share and cash issue leading to the formation of a new 51 per cent Australian-owned company — Renison Goldfields Consolidated Ltd. The UK-based Consolidated Gold Fields, which now holds 69.8 per cent of CGFA and 4.8 per cent of Renison will hold 49 per cent of the proposed new company. The merger of CGFA and the other three companies in which it holds majority interests, was first proposed in March but the offer had to be revised when unfavourable market reaction caused all shares except AMC lo fall. ‘ Consolidated Gold, then agreed to. increase . its cash contribution by $12.8M to $42.2M. • t -