LWR says accept

Press, 19 July 1989, Page 35

LWR says accept

Lane Walker Rudkin Industries’ independent directors yesterday recommended shareholders accept the 175 c a share take-over offer from Brierley Investments, Ltd (BIL), after unsuccessfully seeking an increase in the bid. In a statement, the independent directors of LWR said that having taken investment advice from Arthur Young, chartered accountants, they had sought an increase in the offer. “In Arthur Young’s view, a price of 182 c would be appropriate having regard to the successful restructuring of the company and its apparent prospects. The net asset backing was estimated as being 178 c at June 30.”

The independent directors said that having decided to recommend the 175 c a share offer from a BIL subsidiary, BIL Equities (No. 14), they were mindful of the unenviable consequences to minorities of declining share negotiability, particularly because the offer was unconditional as to acceptances. BIL already owns 56.13 per cent of LWR. The independent directors — Messrs R. N. Mason, D. A. Lee (managing director), W. H. Broadhead, J. F. Penney, .and M. A. Stevqns — along with the BIL nominees on the board — Messrs T. G. Iggo (chairman) and T. L. Kerr — stated that they would personally accept the BIL

Equities (No. 14) offer. The LWR directors have also released some estimates for the year ended June 30, 1989. These indicate that the pre-tax profit will increase to at least $9.5 million (SS.BM in 1988). Because of the reduction in the company tax rate from 48% to 28%, the net profit is estimated to inr crease to at least $6.5M ($2.7M), plus a share of results from associate companies. Extraordinary items were expected to be postive, they said. In 1988, LWR had an extraordinary profit of $2.7M. The audited result for the year ended June 30 was expected to be released by August 18.