Young Nick refuses

Press, 15 January 1986, Page 28

Young Nick refuses

PA Wellington Young Nick Holdings, Ltd, declared its offer for Endeavour Services Ltd unconditional because it already had a 67 per cent stake, and it would not accept the ■competing bid by Omnicorp Investments, Ltd, said a Young Nick director, Mr Neal Plowman, in a letter to Endeavour shareholders yesterday. Omnicorp intended • to take over Endeavour at 185 a share and it already has about 20 per cent. Mr Plowman said it was understood the offer would be conditional on Omnicorp receiving 91 per cent acceptances from Endeavour shareholders. “Because Young Nick now holds 67 per cent of Endeavour’s share capital,

it is clear that if that condition of Omnicorp’s offer is to be satisfied, it will be necessary for Young Nick to accept Omnicorp’s offer,” Mr Plowman said. “I would like to make it clear that Young Nick will not be accepting the'Omnicorp offer. “It follows that the condition in Omnicorp’s offer as to 91 per cent aceptances therefore cannot be satisfied,” he said. Because Young Nick had made its offer unconditional, shareholders who had already accepted Young Nick’s offer would be paid 175 a share by January 31. The dividend, for which entitlements close on January 20, would now be paid to Young Nick and not to shareholders who accepted Young Nick’s offer.

Shareholders who had not yet accepted Young Nick's offer, should do so by January 20 as the offer remained open for acceptance on an unconditional basis until then.

Meanwhile, in its letter to shareholders, Endeavour directors said they were are unable to recommend the Omnicorp offer.

“Although it would be usual to recommend the highest offer, your directors are reluctant to do so, as... there is no certainty that the Omnicorp offer will become unconditional,” the letter said. “In that event, shareholders could be disadvantaged.”