Bunting bid for T. J. Edmonds

Press, 14 November 1981, Page 18

Bunting bid for T. J. Edmonds

PA Wellington Bunting and Company, Ltd, the Christchurch-based investor, has lodged a formal take-over offer for all the issued capital of T. J. Edmonds, Ltd. The offer is one Bunting share, which has current market value of 255 c and, 100 c cash for each of the 1,549,640 T. J. Edmonds shares (which sold at 270 c before the announcement of the “don’t sell” by the T. J. Edmonds directors) or 320 c in cash for each T. J. Edmonds share, a director of Buntings, Mr P. D. Collins, said in a statement.

The board of T. J. Edmonds has agreed to recommend the offer to all shareholders and intends accepting the cash and shares offer in respect of their own shareholdings. Mr P. D. Collins said: “After the successful reconstruction of Buntings the directors have been looking to re-establish a strong South

Island trading base. The company has already made substantial investments in New Zealand Farmers Cooperative Association. Andrew’s and Beaven, and Southern Cross Hotel, and we see the acquisition of Edmonds with its first class resource and export interests as being another significant move in this strategy.” The existing Edmonds operations would benefit through the association with the financial strength and expertise of Buntings, which will provide job security and a bright future for all staff, he said.

“We have already informed the Edmonds directors that we intend to further develop the opportunity of participating in one of the more exciting companies in New Zealand and snaring in the tax-free dividends being paid by Buntings,” said Mr Collins.

The offer is subject to approval by the Examiner of Commercial Practices.