North BH makes $64 million premium issue

Press, 9 February 1983, Page 29

North BH makes $64 million premium issue

PA Melbourne The multi-faceted mining and investment house. North Broken Hill Holdings. Ltd, will raise sAust64 million through a one-for-four renounceable rights issue, the directors said. They said that about 43 million ordinary 50c shares would be issued at a premium of 100 c each—a total of 150 c a share and a 100 c discount on current market prices. It is the first general issue to shareholders for about 20 years and follows North BHs $7O million take-over of Associated Pulp and Paper Mills. Ltd. North holds about 97 per cent of APPM’s issued capital and js compulsorily acquiring outstanding shares. The directors said that the funds generated from the issue will be used for work-

ing capital purposes and general funding of the group. A North BH spokesman said the issue was not specifically designed to cover outlays for the acquisition of the A PPM. However, he conceded part of the issue funds would replace capital and repay borrowings used for the takeover. The directors said the bid would be funded from existing resources and available facilities when they announced the offer in November last year. The North directors did not guarantee maintenance of existing dividend rates on the enlarged capital. The company’s dividend policy is to maximise the return to shareholders, they said in yesterday's statement. Future dividend payments

will depend on the profitability of the group and its financial requirements. The spokesman described the two-paragraph statement on future dividend policy as conservative. “I don't think it indicates we are not going to maintain the dividend rate," he said. The new shares would not participate in the 3c interim dividend declared last month but would be eligible for part of future dividend payments according to the paid-up value of the shares. Shareholders accepting the offer would be able to pay in three instalments—the first 50c on April 11. another 50c by November 18. and the balance by May 11 next year. The issue would be fully underwritten by the Melbourne brokers, E. L and C. Baillieu, and Potter Partners.