Lion xenophobic?

Press, 11 September 1987, Page 8

Lion xenophobic?

PA Auckland Lion Corporation is reluctant to introduce • a scheme whereby shareholders could take bonus shares in lieu of cash dividends for fear of becoming an overseas company. The directors of Lion were asked at the annual meeting why such a dividend reinvestment scheme had not been introduced.

In reply, the managing director, Mr Douglas Myers, said the present level of overseas shareholding in the company was just below that at which Lion would become an

overseas company. 1 He said that if a bonus share scheme was intro- i duced, for tax reasons, i the overseas shareholders | were likely to take shares ' instead of cash. >• ’ If that were the case. Lion would become an overseas company. Although that was not as disadvantageous to the company as it would have > been some years ago, Lion was wary of becoming an overseas company.. Another - shareholder suggested that the shares- I in-lieu-of-dividend scheme be introduced for New Zealand-domiciled share- < holders to avoid such a ,

course. The company’s chairman, Sir Gordon Tait, said such a move may be possible. The board would certainly study the suggestion closely. Earlier Mr Myers told shareholders Lion was well placed to prosper in the year ahead, in spite of the tough trading environtment “We will continue to improve our cost competitiveness and supplement it by high levels of marketing and increased consumer services as we drive for market share growth.” ‘