ACI issue details

Press, 28 October 1981, Page 28

ACI issue details

PA Sydney Australian Consolidated Industries, Ltd, plans a one-for-five issue of $1 deferreddividend shares at par, with linked options, the chairman (Sir Andrew Grimwade) announced. The issue will raise about sAustsoM which will be used to finance the group’s further expansion into energy resources, particularly coal. The renounceable rights issue will be made to shareholders registered on November 16 and will close on December 18. New shares will not rank for dividend until 1985, but will rank equally in all other respects. The directors expect that the company’s resource developments will be providing a steady cash flow to the group by the time the deferred shares rank for dividend. With each of the rights, shareholders will be offered a one-cent option entitling them to subscribe for further ordinary shares at $l.BO after four or five years.

Option holders will be protected for hew issues and bonus issues. Payment will be 51c on acceptance and 50c on or before June 30, 1982. The issue has been underwritten by Potter Partners, and J. B. Were and Son. ACI, which in the six months to September 27 doubled operating profit to sAust36M (SNZSOM), aims to commit 25 per cent of group assets to energy and natural resources. “This commitment will result in an immeasurably stronger ACI by the end of the decade,” the managing director-elect (Mr L. Cave) said. He said he expected ACI, one of the few Australianowned public companies capable of supporting joint ventures in energy and resources, to receive further opportunities to participate in new projects. “Although long lead times are involved, these moves are laying the foundation for a substantial growth in profits in the future,” he said.