Conversion scheme spurned again

Press, 31 May 1982, Page 12

Conversion scheme spurned again

PA. Auckland Holders of cumulative preference shares in Hamiltonbased Hawkins Holdings, Ltd. have failed to> approve, for the second time, a scheme to convert the preference shares to ordinary shares. . At an extraordinary meeting of preference shareholders in Hamilton the resolution to convert the preference shares to ordinary shares on a one-for-one basis with preference share holders paying a 50cpremium’ was defeated-on a majority vote.

The company's deputy chairman (Mr D. J. Braithwaite) said that the scheme required a 75. per cent majority in favour of the conversion. Although about 70 per cent of the preference shareholders present voted in favour of the scheme, Government Life Insurance, which holds 27 per cent of the preference shares, did not approve the move. ■

Mr Braithwaite said that the Government Life group was not the only shareholder to vote against’the scheme.'

In 1978 a similar scheme of arrangement to convert the preference shares on a ration of two-for-three did not receive sufficient support to go through. Mr Braithwaite said the board had made no decision on whether the move should be “reactivated” but would probably discuss the scheme at its next meeting.

About 200,000 6.5 per cent preference shares are on issue.

At an extraordinary meeting of ordinary shareholders, held directly’ after the preference shareholders’ meeting, shareholders approved an amendment to the company articles of association requiring disclosure of beneficial ownership where five per cent or more of issued shares are held instead of 10 per cent as. previously