Mosgiel offer

Press, 13 April 1984, Page 13

Mosgiel offer

PA Dunedin Some people who appeared on the share register of Mosgiel, Ltd, in 1979 are receiving offers for their shares. The offers coincide with a meeting of shareholders in Dunedin today which will vote on plans to enter into a technical services arrangement with a finance house. The offer for 947,000 specified preference shares has come from the Auck-land-based Merchant Funds, Ltd, which is offering 10c a share now or 50c in 1989 on a first-come, first-served basis. Mr R. B. Wilson, a spokesman for Merchant Funds, says this would give his company 19.9 per cent of the capital. This is the maximum holding allowed by

the revised take-over rules before approval has to be sought from the Commerce Commission. Mr Arthur Barnett, chairman of Mosgiel Ltd, declined to comment. A letter inviting shareholders to the meeting said the company’s subsidiary, Mosgiel Textile, Ltd, was trading at a profit and the parent company hoped to use this to fund payments to creditors and shareholders. A technical services agreement for a maximum of six years may enable creditors to be paid in full. Creditors and shareholders are urged in the letter not to take action which could destroy “what could be a valuable asset, namely the ability of the company to earn a future income.”