Wallace move halts share bid

Press, 10 March 1984, Page 21

Wallace move halts share bid

The three Auckland businessmen who have been bidding for a larger interest in D. McL. Wallace, Ltd, have withdrawn their latest on-market offer, and say they are reviewing their position after the target company sold its half shares in an associate, Industrial Waste Collections, Ltd. D. McL. Wallace said yesterday that it had sold for $1.2 million its stake in the other company to its partner, TNT, Ltd.

Messrs G. D. Bowkett, H. K. Baigent, and J. A. Jamieson said in a statement that they questioned the motive of the D. McL. Wallace directors in making the sale when Industrial Waste Collections had been a “major profit contributor.” They said they also questioned the motive “in view of the fact that we had previously put forward our proposal to the directors which we consider would have benefited all D. McL. Wallace’s shareholders by maintaining their returns from the waste industry.

“The matter of our shareholding is now under review.”

The trio, who are the only directors of A. W. Bryant, Ltd, an industrial waste disposal firm with interests in other cartage activities, have the approval of the Examiner of Commercial Practices to raise their holding in D. McL. Wallace to a maximum of 51 per cent.

At the end of last month, the businessmen announced that they had secured 19.13 per cent of the company’s capital, and this week made an on-market offer for a further 10 per cent. Yesterday, the Auckland broking firm of Statham, Caesar, Jackson and Company said they had been instructed to withdraw that bid.

In their statement yesterday, the D. McL. Wallace directors said they were opposed to the move being made by Messrs Baigent, Bowkett and Jamieson, after talks with the trio. The directors said share-

holders’ funds in Industrial Waste Collections at last balance date totalled $1,521 million.

‘“This shows a capital profit to Wallace of approximately $825,000. The sale of the shares in Industrial Waste Collections is in line with Wallace policy, adopted last year, to cease to be involved in associate companies unless holding a controlling interest,” D. McL. Wallace said.

It pointed to its sale in December of a 45 per cent holding in Diversey Wallace, Ltd, and to current negotiations for the acquisition of all of the Australian firm of D. McL. Wallace Pty, Ltd. “In regard to Industrial Waste Collections, each partner has expressed a desire to take over the other partner’s share when the matter was first broached over five months ago.” It was expected that the capital profit involved in the. above transaction will be available for tax-free distribution to D. McL. Wallace shareholders, they said