Stake in Rothmans
PA Auckland Rainbow Corporation, Ltd, has enjoyed rapid response to its stand in the market for 11M shares in Rothmans Industries, Ltd. When counting finished last evening Rainbow had secured 7.3 M Rothmans CCL dividend CCL Group, Ltd, has announced a second interim dividend of 5c a share, to be paid on April 4. CCL said its strong performance had continued in the second half and there had been a substantial capital gain from the sale of Australian operations.
shares at its offer prices of 320 c for a 50c ordinary share and 430 c for a specified preference share. The Rainbow success, which the managing director, Mr C. L. Heatley, described as more than pleasing, came despite counter-offers at higher prices from three sharebroking houses.
Some off-market trading between institutions was also reported. Mr Heatley said the 7.3 M shares were firm sales. The acquisition of other parcels had been discussed, he said, but these had still to be confirmed. Moves counter to the Rainbow offer were made by Francis Allison Symes, of Wellington, and Morrow and Benjamin, of Auckland, both of which sought 2M shares. Francis Allison offered 330 c for an ordinary share and 440 c for a specified-preference, with an escalation clause. The Auckland brokers, Hendry Hay Smythe and Horton, also acted for Francis Allison on the regional exchange. The Morrow
and Benjamin offer prices were 341 c and 421 c, respectively. At the close of business, Francis Allison said it had filled about 10 per cent of its order. Morrow and Benjamin said it had bought 480,000 ordinaries at 346 c and about 10,000 spec, prefs at 446 c. The Auckland broker, Paine Belcher and Partners, bought actively, especially during the morning, and; is believed to have bought about 2M shares at prices as high as 360 c.
The consensus is that the identical buying orders of 2M shares could have been a ploy to . lift beyond 40 per cent the combined holdings of the present major shareholders in Rothmans, Godolphin Laing, Ltd, and Magnum Investments, Ltd. Each has a holding of about 7.6 M shares, or 16.5 per cent of the issued capital. Observers said that, with at least 10 per cent of the company in the hands of shareholders “friendly” to the present owners, control has now been safeguarded.
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Bibliographic details
Press, 28 February 1986, Page 16
Word Count
389Stake in Rothmans Press, 28 February 1986, Page 16
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