Brierley bids for Dunedin firm
PA Dunedin Brierley Investments. Ltd. through its subsidiary. Niven Industries, Ltd, has made a take-over offer for R. B. Denniston "and Co.. Ltd. the Dunedin-based engineer merchants. The offer, made on Monday. is of 59rtc cash for each of the 200.000 ordinary’ 100 c Denniston shares, all of which are in private hands in Dunedin and Christchurch. Denniston has a Dunedin base with a 50 per cent interest in a Timaru branch. Its shares were last traded in 1980 at 147 c. A Niven director. Mr B. A. Hancox, said in the offer document that Niven Industries’ main trading subsidiary. Kidd Garrett. Ltd, worked in the same business as Denniston, with 10
branches throughout New Zealand. “Niven Industries wishes to acquire R. B. Denniston to gain the obvious strengths of R. B. Denniston in terms of (its) staff and position in the market place in the South Island." he said. The offer will be paid within 14 days of its being declared unconditional. Denniston's directors have recommended acceptance of the offer. Niven said in its offer that it would enable Denniston shareholders • to increase their income fourfold. Income for each Denniston share has been 21.25 c a year, whereas if the 590 c a share offer was invested in prime debentures at 16 per cent it would return 94c a year. According to Companies'
Office records, the 1981 accounts showed a profit of $193,686 which, together with the results of the half share in the Timaru branch, resulted in a final profit of $226,375, compared with $162,099 for 1980. Retained earnings were $909,256. Total shareholders' funds stood at $1,315,810. with an excess of current assets over liabilities of $1,041,402. The chairman of Denniston. Mr H. C. Gray, of Christchurch, said the directors unanimously recommended acceptance of the Niven offer, and all directors intended to accept it. Between them they hold more than 44,000 shares. The offer is open until April 15 and is conditional on acceptance for a minimum of 150.000 shares.
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Press, 19 March 1982, Page 9
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337Brierley bids for Dunedin firm Press, 19 March 1982, Page 9
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