Two Consol. Ent. issues

Press, 24 October 1984, Page 29

Two Consol. Ent. issues

PA Auckland Consolidated Enterprises took a leaf out of the Brierley Investments book yesterday by tagging a one-for-five bonus share issue behind a one-for-four cash issue. The cash issue is being made at 18c a share, including a 14c premium. The last sale price of the Consolidated Enterprises ordinary shares on the Stock Exchange was 26c — 44.4 per cent higher than the level at which the issue has been made. The chairman of the investment group, Mr Warwick White, told the annual meeting that the SIM to be raised through the issue would be used to strengthen its working capital base. It would also help to finance a sizeable acquisition being negotiated by management. The cash issue was payable in full on application by December 3, ex rights November 2. Shares alloted through the cash issue will qualify for a one-for-five bonus issue, details of which will be disclosed later. If taken up, the cash-

bonus issues will boost shareholders’ interests by 50 per cent at an average cost of 9c for each additional share. The managing director of Consolidated Enterprises, Mr R. J. Leggett, said trading in the first quarter of the 1984-85 financial year had yielded “significant increases in sales and profits”. The directors say they hope the group’s improved profitability will be sufficient to maintain its 1c a share (25 per cent) annual dividend rate on capital increased by the cashbonus issues. Mr White said. the trading results of the first three months might not be indicative of what was in store for the group during the balance of the year, “but we believe Consolidated Enterprises is moving from strength to strength”. Devaluation had yet-to affect sales, but he warned that the computer market “must suffer a bit because of price escalation of imported products”.

Mr Leggett said that, apart from the intended purchase of four computer dealerships, the group was not contemplating any further acquisitions in the industry. Instead, a material purchase in an alternative sector was being investigated. Details of. the acquisition would be released when negotiations were completed.