Rosebank takes Jac’s offer

Press, 10 March 1982, Page 23

Rosebank takes Jac’s offer

Rosebank Daveys Industries, Ltd, the Otago building supplies company which has been subject to many proposals of takeover marriage, has decided to accept the hand of Jac’s Hardware and Timber Company, Ltd. Rosebank’s directors recommended to shareholders acceptance of a take-over offer of $2.80 a share for a minimum of 51 per cent of Rosebank shares. The offer values the company at $2,661,934. Rosebank has 769,793 ordinary $1 shares and 180,898 $1 preference shares. The Rosebank directors earlier had declined to make an issue to one suitor, John Edmond Holdings, Ltd, which would have given Edmonds a 23.9 per cent holding. Instead Edmonds, a Dunedin-based building supplies company, went to the market and bought 13 per cent of the company at $3 a share last Thursday and Friday. Another transport and roading contractor, Fulton Hogan Holdings, already has 27 per cent of Rosebank shares. In a letter from Jac’s to Rosebank, Jac’s directors said they intended to offer $2.50 a share. But after discussions with Rosebank they

decided to lift this to $2.70. Subsequently the amount was raised to $2.80. The examiner of commercial practices has approved the takeover. The Rosebank directors said in a letter to shareholders they are accepting the offer in respect of their own holdings. These, including trusts under their control, amount to 30. per cent of the capital, which leaves Jac’s looking for another 21 per cent to achieve the target number at which the offer can be declared unconditional. It is understood that Edmonds will be tendering the 98,000 shares it captured in two days’ buying last week, having achieved the security of timber supply which it was seeking. Edmonds and Rosebank jointly own John Edmond Timber Co., Ltd.