Wattie bids for Waitaki shares

Press, 20 April 1982, Page 1

Wattie bids for Waitaki shares

Wattie Industries, Ltd, intends to spend up to $28.5 million buying shares in the country’s largest meat processing company, Waitaki N.Z. Refrigerating, Ltd, of Christchurch.

In an export-orientated move, Wattie’s will offer 285 c for each ordinary share, and 255 c for each - specified preference share. '

A maximum of 9.9 million shares, or 24.9 per . cent of Waitaki’s shareholding, is being sought.. An Auckland sharebroker, Buttle Wilson and Company, has been in-

structed to start buying through* the Stock Exchange on benalf of Wattie’s. Wattle’s is- offering a 56c premium (24 per cent) above the price paid for Waitaki ordinary shares during morning trading yesterday, Wattie’s chairman (Mr W. T. Morriss). said that longterm there were compelling reasons why two major New Zealand-owned food processors which / each served the farming industry should work more closely together in international markets. • This initiative by Wattie’s

was expected ultimately to work to the advantage of both companies, and to be in the national interest, Mr Morriss said. Short-term it made sound commercial sense for Wattie’s to become a shareholder in a company which was well managed add showed good potential for further •growth, he said. Although the meat industry was experiencing some difficulties which might be unsettling to private in-, vestors, Wattie’s was making a long-term investment

which it believed was verv sound. “We have confidence in the ultimate future of this country’s meat industry and we believe that as a New Zea-land-owned entity W’aitaki N.Z. Refrigerating has the resources and skills to adjust to changing circumstances.” Mr Morriss said that Waitaki’s directors, management, staff and those associated with the company could be reassured about the move, as Wattie’s had no intention of seeking a role in day-to-day management.

Waitaki’s chairman (Mr E. J. Neilson) confirmed last evening that the company had received an offer for a substantial shareholding. The Waitaki board would meet at 8,30 a.m. today, he said, and would also have discussions with Wattie representatives. A statement would be made later today. Asked if he thought the Wattie offer price generous, Mr Neilson said: “No.” Asked if he thought the big price "ungenerous,” he answered “ves.”

> vs. Further report, page 26