Early listing for Mogal

Press, 4 March 1983, Page 10

Early listing for Mogal

PA Auckland Mogal Corporation. Ltd. shareholders who do not accept the present offer of 240 c a share made by the Owens Group, Ltd. will soon discover what value the market places on their shares.

A letter from Owens undertakes that the company will have firm proposals for listing Mogal by June 30.

“It is the intention of The Owens Group to further protect the interests of minority parties by moving towards listing on the New Zealand Stock Exchange as soon as practicable." It says that listing of Mogal shares will give greater flexibility and marketability to all shareholders. “If shareholders are not satisfied with listing proposals we intend making by June 30 they would still have two months to take advantage of the take-over offer.” A spokesman for Owens Group said yesterday that little progress had been made towards listing yet, and that changes to Mogal’s articles clearing the way for

the take-over had only just been approved. He said that Mogal had about 900 shareholders at present and could always issue more shares if this was necessary to meet the Stock Exchange’s listing requirements.

An earlier letter from Mogal’s chairman, Mr Peter Grayburn, said that the Owens Group preferred that minority shareholders retain their shares.

The offer price of 240 c compares with the last offmarket sales of 250 c before the notice of take-over and a 1983 high price of 250 c and a low of 188 c. The high and low prices for 1982 were 200 c and 170 c.

Mogal’s 1982 accounts give a net asset backing of 260 c a share. The price of 240 c a share is the same as being offered to Mogal’s other major shareholders, TNL Group, Ltd (a 25 per cent stake) and Universal Transport (N.Z.), Ltd (20 per cent). Acceptance by these parties would give the Owens Group 70 per cent of Mogal’s capital.