Bid for W. Neill shares

Press, 10 December 1983, Page 24

Bid for W. Neill shares

Teltherm Industries, Ltd, the Auckland engineering and consumer products group, yesterday announced it was seeking 51 per cent of the capital of Wilson Neill, Ltd, which operates in liquor, exports and home appliances. The Wilson Neill directors issued a “don’t sell” notice last evening, saying shareholders should wait until an assessment of the offer can be made. 1

The shares of another Dunedin firm are the subject of an offer. The Dalgety Crown Corporation, Ltd, is in the market for up to 24.9 per cent of Reid Farmers, Ltd.

The offer by Teltherm is one 100 c fully paid ordinary share for two fully paid ordinary Wilson Neill

shares. Teltherm last sold for 400 c and Wilson Neill traded at 162 c.

Teltherm already has beneficial ownership of 1,719,500 Wilson Neill shares, amounting to about 23 per cent of the total capital. The company secretary of Teltherm, Mr Brian MacKenzie, said yesterday that the offer was part of a strategy set up by the company in a new investment division about six months ago.

Although Teltherm and Wilson Neill had some similarities in consumer products and exports, the 51 per cent holding was seen as an investment, he said. If there was more than a 51 per cent acceptance, the

acceptances would be scaled down accordingly.

In a statement, the Teltherm directors say that they have no “foreseeable” intention of exceeding their 51 per cent holding in Wilson Neill if the bid is successful. The Dunedin company

will remain a listed company with Teltherm representatives on the board, Wilson Neill will remain in Dunedin, and all existing activities and staff will be strongly supported and developed, the Teltherm directors say.