OPP move

Press, 24 December 1985, Page 18

OPP move

PA Dunedin The major family shareholders in the Dunedin-based

Otago Press and Produce Ltd have moved to acquire 100 per cent of the listed company. They say the purpose is to keep ownership and management in local hands. OPP owns the “Otago Daily Times," two community newspapers in Dunedin, and other companies in the local and export marketing of fruit and produce, as well as building, construction, and packaging companies. The directors of OPP said that notice of intention to make a take-over offer to shareholders for all the 3,083322 issued shares had been received from Fraser Smith Holdings, Ltd. Fraser Smith Holdings is a private company formed to make the offer. Its shareholders are the family of the late Mr S. D. Smith and the Ftaser family, both of whom have substantial holdings in OPP. The Smiths were formerly the major owners of the “Evening Star” newspaper in Dunedin. The Frasers had produce interests which were amalgamated into OPP. The offer will be posted to shareholders about January 17.

The offer price is 634 c per share cash tor those shareholders who accept by the closing date, February 28. The total value of the offer at this price is $19,548,261. The price includes the interim dividend of 9c per share, which is due for payment on January 20.

The offer is conditional on the directors of OPP resolving to postpone payment of the interim dividend until March 14. In the event of the closing date being extended, the offer price is reduced to 625 c cash for those shareholders who do not accept by February 28, and who thus receive the interim dividend payable on March 14. OPP’S managing director, Mr Julian Smith, said the offer was for all the issued shares in the company, but Fraser Smith Holdings might accept any number more than 51 per cent Mr Smith said the offer was being made to convert OPP into a private company, “thus ensuring that the ownership and management of the ‘OtagoDaily Times’ and produce markets remain in Dunedin.” He said the new company intended to continue operations as before, including the publication of the “Otago Daily Times” and the community newspapers. The ‘Times" has been owned and operated in Otago for almost 125 years.

OPP has about 960 shareholders. Mr Smith said the K comprising all the and Smith families holds more than 60 per cent of the capital All the present directors of OPP, and Mr Nick Smith, will be invited to become directors of Fraser Smith Holdings.

The Examiner of Commercial Practices has granted approval for Fraser Smith Holdings to proceed with the acquisition on December 20.