No change in Humes capital

Press, 10 February 1982, Page 23

No change in Humes capital

The directors of Humes. Ltd. the .Melbourne-based concrete and steel pipe group, announced that they had decided to scrap the plans for a capital reconstruction of the company’s share capital The plan which was announced in conjunction with a take-over offer for all the issued capital of A.R.C. Industries. Ltd. on November 25. consisted of returning to preference shareholders the paid-up value of their shares and 20c a share to the ordinary unit-holders. The proposals were to be undertaken upon the completion of the A.R.C. offer. However, the A.R.C. shareholders had shown an unexpected preference for cash in

accepting Humes' alternative offer, the directors said. The possible reasons for this move were tightening liquidity. rising interest rates, and a weakening sharmarket they said. It was now estimated that of the total cost of $155 million for A.R.C. the cash payout will be about SI3OM. “This will materially change the capital structure of the company, and as a result the board does not consider the proposed capital return to be in the best interest of Humes or its shareholders.” they said. In line with the plan to increase the annual dividend rate from 8c to 10c a share (20 per cent), the interim dividend was raised from 3c to 4c a share.