Pacer approval

Press, 10 February 1989, Page 18

Pacer approval

PA Auckland Pacer Kerridge shareholders yesterday approved an increase in capital and a bonus share issue, after a previous meeting on the same issue was called off. On January 26, a shareholders’ meeting to approve an increase in capital to allow a 7.9-for-one bonus issue was not held after the Williams family — founding shareholders of Kerridge Odeon — took legal action to prevent it. The Williams family objected on the grounds that Pacer directors, David and Steven Phillips, would receive about $8 million worth of shares free of charge by virtue of 1.5 M (1987) options owned by them. The options were unusual

because they carried the same entitlement as fullypaid shares to receive shares in a bonus issue. Subsequently, the Phillips agreed to cancel their 1.5 M options, thereby avoiding a potential legal battle. In the High Court last week, Pacer undertook not to issue any shares in future in respect of the 1987 bonus shares, and to cancel all bonus shares issued to date on them. Terms of a new bonus issue have been increased to 9.2 shares for every one held. This was done to make up for the shares the Phillips brothers will no longer be taking up, and to lift Pacer’s issued share capital to a targeted 199.6 M shares of 50c each.