Cavalier Elco merger

Press, 22 June 1984, Page 10

Cavalier Elco merger

PA Auckland The merger of Cavalier Corporation and E. Lichtenstein and Company, Ltd into Cavalier Elco, Ltd will produce combined shareholders' funds of about $26 million and total assets of about $53 million, the two companies say. The new company’s structure will comprise 22.327,344 shares, of which 15.6 million (69.8 per cent) will be issued to present Cavalier shareholders, and 6,727,344 to Lichtenstein shareholders.

Documents on the proposed merger will be mailed to shareholders today.

Under the scheme, both Cavalier and Lichtenstein will pay a 6c a share dividend taxfree from share premium reserve for their trading period to June 30 subject to shareholders’ approval.

The balance date of Cavalier Elco will be June 30, allowing the companies to be treated for dividend purposes as a merged group from July 1. It expects to pay a 10c a share dividend for the year to June 30, 1985, the documents show. "The new holding company will enjoy the same capacity to make tax-free payments as Cavalier and Lichtenstein have currently,” the chairmen of the merging companies say. As reported previously, Cavalier shareholders will receive one share in Cavalier Elco for each share held at present. However, Lichtenstein shareholders will now receive six shares for each five shares held plus an additional 50c cash for each share.