Lichtenstein and Cavalier to merge
Directors of the Cavalier Corporation, Ltd, and E. Lichtenstein and Company, Ltd, are proposing that the firms should merge. They will recommend to shareholders a scheme of arrangement under section 205 of the Companies Act. Lichtenstein is a woolscouring and exporting firm, based in Auckland. Cavalier is a recently listed carpet manufacturer and exporter, also at Auckland. Existing shares in the two companies will be converted into shares to be issued in a new holding company, Cavalier Elco, Ltd, subject to departmental approval of that name. Shareholders in Cavalier will receive one ordinary share of 50c in the new company in exchange for each 50c share in Cavalier. Shareholders in E. Lichtenstein will receive six
50c shares in the new company for every five shares held in Lichtenstein. Both companies party to the merger will make dividend payments immediately before the scheme becomes effective. Cavalier shareholders will receive a dividend of 2c per share for the three months to June 30. This will be in addition to a dividend of 4c per share for the period to March 31. Both of these dividends will be payable from tax-free sources. Lichtenstein shareholders will be paid 6c per share, from taxable sources, for the six months to June 30, 1984. In addition a special dividend of 50c per share will be paid to Lichtenstein shareholders, 45 cents of which will be from tax-free sources. Directors forecast that, given reasonable trading conditions, an annual divi-
dend of 10 cents per share will be paid. The present chairman of E. Lichtenstein, Mr P. W. Grayburn, will be chairman, Mr A. C. Timpson will become deputy chairman and chief executive officer. Other members of the new board will be drawn from the existing boards of the two companies. It is expected that shareholders will be sent documents relating to the scheme before the end of June. The consent of the Commerce Commission and the High Court will be required and meetings of shareholders of both the companies will be held in July to approve the scheme of arrangement. The merger will establish a vertically integrated comSin which the compocompanies will continue to trade autonomously under existing management.
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Press, 12 May 1984, Page 22
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367Lichtenstein and Cavalier to merge Press, 12 May 1984, Page 22
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