Euro-National forecasts profit of $1M

Press, 29 June 1985, Page 21

Euro-National forecasts profit of $1M

PA Auckland Euro-National Corporation, Ltd, which has mounted a takeover bid for Pacer Corporation, Ltd, is forecasting a net profit of $1 million for the period ended March 31. The forecast is made in the formal take-over documents sent to Pacer shareholders. As reported, Pacer shareholders are being offered either 524 c cash for every two Pacer shares or seven EuroNational 50c ordinary shares issued at a 25c premium plus two options for every two Pacer shares held. The offer values Pacer shares at 262 c. The options will be exercisable between August 15 and October 15 1988, at a price of

70 per cent of the weighted average selling price for EuroNational shares on the New Zealand Stock Exchange for July 1988. Options will participate in all bonus and cash issues on exercise. Euro-National is entitled to issue further options to subscribe for Euro-National shares or other Euro-National securities on such terms as Euro-National may think fit without the sanction of option holders. The offer will be declared unconditional on receipt of acceptances in respect of 90 per cent of the Pacer capital or such lesser amount as EuroNational may decide. The last day on which it can be declared unconditional is September 30. When the takeover is complete Euro-National will have an issued capital of $5 million, comprising 10 million 50c shares. There will also be 2,875,142 options on issue. Of the capital, Alex Harvey Industries will hold 25 per cent, National Bloodstock 30 per cent and executives and staff of Euro-National 35 per cent. The rest will be in the hands of the public, which means there will be only some 2 million shares tradable on the share market. Application has been made to have the shares listed on the share market. Euro-National does not have any Pacer shares, but the wife of the managing director owns 43,750 Pacer shares. The take-over document shows Euro-National was incorporated on June 7 and has not yet traded. The paid-up and issued capital is 350 c, made up of 7 shares of 50c each. The principal activities of the company will be those of a merchant and investment bank.