Chase launches bid for Ent’growth Int.

Press, 20 October 1987, Page 26

Chase launches bid for Ent’growth Int.

Chase Corporation has launched a take-over offer for Entregrowth International, the New Zealand-listed company that acquired Chase’s North American Interests. The offer is one Chase ordinary share for every three fully paid Entregrowth shares, which gives a value of 150 c for each Entregrowth share on Friday’s prices. The option offer is one Chase option for four Entregrowth options, valuing each option at 60c. Entregrowth’s shares closed at 135 c on Friday and its options at 55c. The shares went against, the trend yesterday, gaining sc, but the options lost the same amount

Chase is at present concluding agreements which will give it 72.4 per cent

of Entregrowth’s capital, and the directors decided to acquire the remaining shares and options. The offer for the 17.9 million shares and 12.4 million options is valued at $34.3 million and involves Chase issuing 5,978,305 shares and 3,099,633 options.

Chase’s chairman, Mr Colin Reynolds, said that the move was a logical one. For Entregrowth’s shareholders it would enable them to continue to benefit from the base established in its North American interests, as well as the broader Chase

group’s activities. The take-over would allow Entregrowth to concentrate on North America, with access to Chase’s international funding base, he said. The Entregrowth board has recommended that shareholders accept the offer.