BREWERY SHARES

Evening Post, Volume CXL, Issue 60, 8 September 1945, Page 8

BREWERY SHARES

SALES AND MERGER

APPRECIATIONS NOTED

Particulars of the finances of brewery companies were given to the Royal Commission on Licensing when Mr. J. D. Willis, counsel assisting the Commission, called the assistant registrar of companies at Wellington to prove figures concerning the transactions of J. Staples and Company, Limited, and New Zealand Breweries, Limited.

Mr. Willis said that J. Staples and Co., Ltd., was incorporated in 1889 to acquire the breweries and hotels of J. Staples and Co. and Hamilton Gilmer, the capital being £60,500, and the principal shareholders John Staples, Martin Kennedy, and Hamilton Gilmer. Between 1897 and 1917 the [capital of the company was increased tto £350,000. In 1923 the company sold its brewery to New Zealand Breweries, Ltd., receiving 57,000 £1 shares in New Zealand Breweries, Ltd., and approximately £143,000 in cash. In 1937 the company's 23 freehold and two leasehold hotels were sold to New Zealand Breweries, Ltd., for £496,000. Its business then being substantially at an end, the company went into voluntary liquidation in 1937. Payments made to date by the liquidator to the shareholders, said Mr. Willis, included 116,391 shares in New Zealand Breweries, Ltd., distributed in specie and valued at 50s a share, the shareholders to date receiving by way of capital distribution no less than £925,352.

New Zealand Breweries, Ltd., was formed in 1923, and it was in effect an amalgamation of the brewery businesses of the 10 principal brewery and hotel-owning companies in the Dominion, namely, James Speight and Co., Ltd., W. Strachan and Co., Ltd., McGavin and Co., Ltd., the Crown Brewery, Ltd., Ward and Co., Ltd., S. Manning and Co.. Ltd., J. Staples and Co., Ltd., D. J. Barry, Ltd., the Lion Brewery. Ltd., and Hancock and Co. (N..Z)), Ltd. The company did not at that stage acquire any hotels.

The freehold and leasehold land, plant, and stock-in-trade of the vendor companies was valued at £1,000,000; they were to be paid this amount in cash by New-. Zealand Breweries, Ltd. Their goodwill in their businesses was

valued at £500,000, and the contract provided that they were to receive in exchange 500,000 £1 fully-paid-up shares in New Zealand Breweries, Ltd. New Zealand Breweries, Ltd., was incorporated with a capital of £500,000, the whole of this amount being issued to the vendor companies in payment for goodwill (except for £7 paid in cash). The public subscribed £1,000,----000 in 10 per cent, first mortgage debenture stock, that money being used to pay the vendor companies for their land, plant, and stock-in-trade. The vendor companies undertook to sell to the debenture holders a limited number of shares in proportion to the number of debentures taken by them.

In 1929 the nominal capital was increased to £2,000,000. In April, 1930, £250,000 standing to the credit of the company's reserve funds was capitalised, shareholders receiving a bonus of one £1 share for every two £1 shares held by them. At approximately the same time the company exchanged shares for debenture stock, debenture holders receiving one £ 1 share for every £2 worth of debentures surrendered to the company. Shares of a nominal value of £342,271 were issued to debenture holders and £684,542 worth of debenture stock was surrendered. The remainder of the £1,000,000 worth of debentures was apparently paid off in cash. In 1937 the company made further allotments totalling 543,108 shares, which brought its present issued share capital to £1,635,379. Mr. Willis also gave figures to show the number of hotels in each land •registration district, with (in parentheses) the number owned by, leased by or mortgaged to brewery, wine and spirit and other similar companies:

Marlborough, 28 (11); Westland, 92 (49); Nelson. 98 (47); Gisborne, 36 (29); Hawke's Bay, 67 (28); Taranaki, 53 (17); Wellington, 166 (73).