SUN NEWSPAPERS

New Zealand Herald, Volume LXXII, Issue 22108, 14 May 1935, Page 5

SUN NEWSPAPERS

OFFERS TO PURCHASE DETAILS OF THE TERMS A MEETING OF SHAREHOLDERS On the requisition of certain shareholders, Stin Newspapers, Limited, is calling an extraordinary general meeting of shareholders, which will bo held in Christchurch 011 June 5, to consider matters dealing with recent ott'crs to purchase the company. The directors will be requested to inform shareholders of the facts relating to the offers of purchase or amalgamation and a proposed special resolution provides that the directors should be guided by shareholders in disposing of the business. It is also proposed that the meeting should consider any purchase proposals made arid give directions to the directors, and there is provision for setting up a special committee of shareholders to act with the directors in the matter.

The following summary of an offer made to Sun Newspapers on behalf of New Zealand. Newspapers, Limited, on May 4, is supplied to shareholders: — "New Zealand Newspapers, Limited, to issue to Sun Newspapers, Limited, 30,000 shares in New Zealand Newspapers, Limited, as consideration for the goodwill of their business.

"New Zealand Newspapers, Limited, to pay £SOOO in cash in the hope that it may assist in compensating employees of Sun Newspapers, Limited, who may lose their employment.

"The "assets of Sun Newspapers, Limited, to be liquidated by Sun Newspapers, Limited, at their own cost for the benefit of the shareholders of the company. From the date of cessation of issue of the Sun the evening paper shall carry the title of Star-Sun.

"The disposal of the plant of Sun Newspapers, Limited, to bo subject to the approval of New Zealand Newspapers, Limited, which will guarantee the sale of certain specified items (of which the book value is £17,829) for £10,150.

"Newsprint stocks approximate £7700, to bo taken over at cost."

REMARKABLE RECOVERY

ANTHONY HORDERN RESULTS DIVIDEND ARREARS PAID An instance of the remarkable recovery in Australian companies since the depression period is provided by Anthony Hordern and Son, Limited, department store, Sydney. Within one and a-half years, up to this month, the company has pnid preference dividend arrears covering three and a-half years to August 29, 1934. These arrears of, dividend, partly at the rate of 7J per cent and partly at 7J per cent less 22 £ per cent, have required £160,123. The new company of Anthony Hordern was formed in 1926 with t £ per cent preference capital of £750,000 and ordinary, £1,250,000. For the years ended February 1927, 1928 and 1929, the net profits were £150,320, £196,94/ and £200,404, and the ordinary dividend was 8 per cent, in 1930 tne company earned £187,049 and reduced the ordinary dividend to 7 per e£nt, and in the following year the profit dwindled to £55,280 and the ordinaries received 2 per cent. Both preference and ordinary dividends were omitted in 1932 and there has been no ordinary dividend since. There was a loss of £16,907 in that year, followed by a profit of £16,517 in 1933 and £51,804 in 1934. The accounts for the year ended February, 1935, are due this month. It is practically certain that the profit will again be increased, as over £87,000 has been paid in preference dividend arrears out of the 1934-35 earnings. In 192b the company's preference shares weie selling in Sj'dney at 24a and the ordinary shares at 255. By 1932 the preference shares had dropped to 14s and the ordinaries to 9s. Recently the shares have been selling at about 25s and 18s respectively.

TRADE AND INDUSTRY

RECOVERY IN BRITAIN STOCK EXCHANGE ACTIVITY LONDON. May 11 • A writer in a leading financial newspaper says:—" Some of the sunlight which illuminated London's Silver Jubilee Day pageantry seems to have penetrated to many corners of the Stock Exchange." This describes the position accurately, iov, although business has not been brisk, as the holiday teeling lasted throughout the week,' the tone in almost all the markets has been distinctly good. Yesterday there was a burst of activity in several departments, notably aircraft shares, which received a stimulus from the Air Ministry's letter to contractors. All aircraft shares showed good rises. The average figures of the clearing banks for April afford encouraging evidence of the improvement in business. The total advances by these banks amounted to £744,700,000. This is the highest April figure for nearly two years, and is more than £10,000,000 higher than that of January, 1934. The rise is partly seasonal in character, but may be regarded as a real sign of the recovery of trade and industry.

KAURI GUM EXPORTS

DECREASE DURING APRIL MARKET REMAINS SLOW Exports of knuri gum from Auckland during April amounted to 144 tons, valued at £3858, compared with 323 tons, valued at £8304, in the previous month. The average value of the April exports was under £27 a toh, and was slightly better than the March average. The market has been very quiet reA few small orders have been placed for good LJ2 grade gum, but other kinds have been very slow of sale. White gum has been almost neglected, One of the many factors which have helped to depress the market over recent months has been thecessation of German buying. It is understood that although German manufacturers are anxious to obtain kauri gum, they cannot obtain import licences, and are forced to use higher priced substitutes. The following table gives the export figures for April, showing the countries to which kauri gum was sent from Auckland, and' its value: Cmeitrv Ton? Vn 1 ne Cnited Kinu.'lom .. 74 £1.397 United Stales .. 53 1.997' Germany . . . . 11 France . . .. t> 208 Totals .. 144 £3,858