A. Barnett promotion

Press, 12 September 1986, Page 10

A. Barnett promotion

PA Wellington The directors of Otago retailer, Arthur Barnett, Ltd, yesterday disclosed that the reason for its don’t sell notice was their promotion of a property company. Arthur Barnett shareholders will be offered 50 per cent of the shares in Arthur Barnett Properties, Ltd, which will seek Stock Exchange listing, according to a statement from the directors. They said that the objectives of the new company were to own Arthur Barnett’s properties in Dunedin, lease back the area needed for its

departmental store operations, develop the other areas, and to own and develop other properties in Dunedin and elsewhere. It was proposed that Arthur Barnett would hold 50 per cent of the new company’s issued capital and the remainder would be offered to Arthur Barnett shareholders on the basis of three 5c shares for every two 50c Arthur Barnett shares. The directors said that after the share issue in the new company was completed, they intended to make a bonus issue of nine fully paid 5c shares in the property company for each 5c share

held. Following this bonus issue the 5c shares would be consolidated into 50c shares — ten 5c shares to one 50c share. ’ ; ■•a The directors would ..seejt Stock Exchange listing'for flje new company by November 19. i Forecast earnings ' for Arthur Barnett Properties for the 11 months to next July 31 were $1.2 million and for the year ended July 31 1988 $1.5 million. The directors of Arthur Barnett Properties are Mr J. W. Gilks, Mr A. W. Barnett, Mr T. D.' Scott, and Mr R. G. Sinclair.