Hellaby bids 239c on Abacus share

Press, 4 December 1985, Page 41

Hellaby bids 239c on Abacus share

PA Wellington Recently restructured meat company, R. and W. Hellaby, Ltd, gave notice to the diversified industrial group, Abacus Consolidated, Ltd, of a formal take-over yesterday. Hellaby is to offer 10 of its fully-paid ordinary 50c shares for every nine Abacus 50c ordinary shares. At closing prices on the Stock Exchange on Monday the offer valued Abacus shares at 239 c (its last sale price was 210 c). The Abacus directors said in a statement that, after careful consideration, they had unanimously resolved to recommend acceptance of the Hellaby offer and would be accepting it for their own shareholding. R. and W. Hellaby, in' a separate statement, said it did not intend that the management of the Abacus group business would be adversely affected and there would be no job losses. The offer is subject to obtaining consents from the Commerce Commission and the Overseas Investment Commission, and receiving acceptances for 90 per cent of Abacus shares or a lesser number as Hellaby directors may determine. The Abacus directors said Abacus had made excellent progress during the past two years since its transformation into a diversified industrial group. “We are, however, conscious of the fact at Abacus

is still a relatively small company. This has meant that we have not always been able to pursue the opportunities available in the market place,” they said. R. and W. Hellaby, after the acquisition of a 40 per cent shareholding by Mr Bruce Judge’s Ariadne Australia, Ltd, had recently undergone a major restructuring. This included the sale of Hellaby’s export meat operations and the acquisition of strategic shareholdings in Alliance Textiles, Ltd, and Donaghys Industries, Ltd. “The take-over will effectively result in a merger of the interests of Abacus and Hellaby as two companies with similar philosophies and operating objectives into a much larger entity,” the Abacus directors said. Abacus has shareholders funds of $7.6 million. After completion of the take-over Hellaby would have shareholders funds of about $6O million. “With its far larger equity base Hellaby will be able to pursue opportunities not available to Abacus,” the directors said. Abacus’ managing director, Mr Andrew Strange, and executive director, Mr Tur Borren, had agreed, subject to the take-over being implemented, to become executive directors of R. and W. Hellaby. Mr Graeme McKenzie,

who is a director of both Abacus and Hellaby, would act as a consultant to Hellaby. “It is intended therefore that the management team which has been successful with Abacus over the past two years will be active participants with Mr Bruce Judge and other Hellaby directors in the management and direction of this major new investment company,” the directors said. “After discussions with Hellaby the directors of Abacus are satisfied that, with the sale of the export meat assets, the principal factor in Hellaby’s recent poor performance has been eliminated.” The take-over documents would be dated December 19 and sent to Abacus shareholders within three days of that date. The offer would close on January, 31.;:; ’ ■ ; Abacus,Tormerly British' Office Supplies, includes Probert Industries, Frank Allen’s Tyre Service, Steel Productions, Universal Fabrics, and RMS Holdings among its subsidiaries. Last week the group reported an 84 per cent increase in interim profit to $783,000. The Hellaby shares to be issued will rank equally with the existing ordinary Hellaby shares, including participation in the forthcoming cash issue. Abacus shareholders will still be entitled to the interim dividend of scps declared last week.