Aust, bidder for Abcal?

Press, 24 September 1988, Page 32

Aust, bidder for Abcal?

Metal Manufactures, Ltd, the Australian cable and wire maker, is the likely bidder for Associated British Cables (Abcal) of Christchurch. The directors of Abcal told the Stock Exchange yesterday that discussions were taking place which may lead to an offer for shares. It advised shareholders not to sell their shares in the meantime. Metal Manufactures bought a 62.7 per cent holding in Abcal from 8.1.C.C. Pic, of London, in June, 1987. Metal Manufactures, based in Pymble, New South Wales, is 43.8 per cent owned by 8.1.C.C. Australia and 36 per cent by C.R.A., the Australian mining company. Austral Standard

Cables, which also has a factory in Christchurch, is a subsidiary of Metal Manufactures. It specialises in telephone cable, while Abcal makes electric cable. Austral Standard Cables in Christchurch has been successful in making opti-cal-fibre cable, increasingly used in communications links. Associated British Cables was set up in 1946 to merge the New Zealand cable and wiremaking activities of several British companies. It was listed on the Stock Exchange in 1966. Products include electric cable and general wiring products. Delays in settling asset transfer details have delayed spending on cable

by Electricorp and power boards, and dampened Abcal’s sales in the latest year. Abcal shares traded at 280 c before the October crash, were at 195 at the beginning of this year and on Thursday rose to 230 c from 210 c at the beginning of September. Abcal’s annual reports have been notable for not including sales figures. The annual report for the year ended March 31 lists the company’s fixed assets at $26,293,378 (at cost) and $36,021,379 with valuation. Less accumulated depreciation of $9.6M, these assets are in the books at more than $26.5M. With current assets ($20.3M) and investments ($429,000) added, Abcal

has total assets of $47.3M. The net asset backing per 50c share at December 31 was 192 c a share. The tax-paid profit for the year was 14.8 per cent. The company has largely completed its reequipment programme. Mr W. M. Logan, a director and the general manager, said in the last report: “New technology, Government policies resulting in redundancies in allied industries, a reduced market share creating shorter lead times and size of production runs have all contributed to a climate of pressure and uncertainty.” New technology at the same time is boosting Austral’s optical-fibre cable sales.