BROKEN HILL CAPITAL

New Zealand Herald, Volume LXXII, Issue 22202, 31 August 1935, Page 9

BROKEN HILL CAPITAL

NEW ISSUE OF £1,493,851 SHAREHOLDERS' CONCESSION FUTURE DIVIDEND HIGHER (Received August HO, 5.5 p.m.) MELBOURNE, Aug. 30 .At tho annual meeting to-day of tho Broken Hill Proprietary Company, Limited, tho chairman of directors, Mr. H. G. Darling, announced that tho board had decided to make an immediate issue to shareholders of ] ,49JJ,854 shares of £1 each, equal to one share for each two existing shares. Tho new shares would bo issued at .'K).s each; payable over 20 months. Tho new capital would bo used in expanding the company's productive capacity. Air. Darling said that tho next dividend. payable in November, would be at the rate of Is .'id a share, compared with recent interim dividends of Is a share.

The new issue will increase the paid capital of the company to £4,481,562. Although it was thought in some quarters that tho annual meeting might have been an occasion for an announcement of a bonus distribution to shareholders to mark the jubilee of the company, the new capital arrangements confer material benefits on holders of shares. The £1 shares to-day are priced at about 665, so that shareholders are iii a position to purchase now shares at well under half the market value. In addition, an increased rate of dividend is definitely promised, although it is doubtful whether the new issue will carry the right to tho higher rate in November. Tho present annual distribution is 10 per cent, but the next dividend Avill be at tho rato of 12J per cent per annum. 'l'lio largo increase disclosed recently in tho company's latest profits, and rumours of a merger with Australian Iron and Steel, Limited, have excited considerable interest in. the company's shares. Tho merger rumours have not been officially confirmed, but the issue of new capital by tho Broken Hill Company makes it appear very likely that the company will purchase a block of Australian Steel shares. This will give tho company virtual control of tho Australian iron and steel industry. Australian Iron and Steel has a paid capital of £3,321,726, divided between English and Australian interests. MORTGAGE CORPORATION FIRST DEBENTURE ISSUE MANY APPLICATIONS PENDING The subscription lists of tho Mortgage Corporation's first debenture issue of £500,000 at 3jj per cent have now been open for five days, and the lists will close on September 10. Although there has been no marked rush for investment, the indications aiK> that the issue will be totally subscribed. It in known that several intending investors are waiting until next week before making application in order not to disturb before the end of the month interest-earning funds :n the Post Office Savings Bank and the Auckland Savings Bank. Brokers expect to handle a considerable number of applications next week.

SYDNEY EXCHANGE | ANTICIPATED DIVIDEND BROKEN HILL PROPRIETARY (Keceivcd August 30, 7.35 p.m.) SYDNEY, Aug. 30 On the Sydney Stock Exchange today there was a generally steady market. A sharp advance took place in Broken. Mill Proprietary shares, in anticipation of a higher dividend. Fiji gold unlisted issues commanded a lot of attention. Tavua Development fell back, but others remained fairly strong. This morning's sales included: —Commonwealth bonds, 3J per cent, 19-19, £9B 2s Gd; 4 per cent, 1988, £lO2 2s (id; 1941, £lO2 10s; 1914, £lO3 2s 6d; 1947, £lO4. Anthony Hordern. 19s 3d; Broken Hill Pioprietar.v, 67s 9d; Colonial Sugar, £42 10s; Dtmlop-Perdriau, 14s 7d; Goldsbrough-Mort, 33s 7Jd; Howard Smith, 18s; James Stedman, 19s 3d; Wilcox-Mofflin, 12s 4d. Later sales included:—Colonial Sugar, £42 17s 6d; United Insurance, £l2 14s; Australian Provincial Assurance, 235; Associated News (ex dividend), 22s 9d; Toohey's Brewery, 29s Gd; Australian Glass, 83s 9d; Dunlop-Perdriau, lis Gd; Goldsbrough-Mort, 33s 7jd; Winch-combe-Carson, 31s; Wilcox-Mofflin, 12s sd; Morris Hedstrom, 245; Farmers, 26s 9d; Lustre Hosiery, 28s 3d; (Jenera 1 Industries, 18s Gd; Hume Pipe, 13s 3d; J. Fielding, 74s 3d; W. Li. Carpenter, 435; Mount Morgan, 395; Broken Hill Proprietary, Oils Gd; North Broken Hill, £7 4s; Bulolo Gold, £8 ss; Hawang Tin, 7s Gd; La rut, lis 9d; Kenong Tin, 7s 9d; Mount Kasi, 235. Commonwealth 4 per cent bonds, 1938, £lO2 2s Gd; 1911. £lO2 lis 3d; 1914, £lO3 2s Gd; 1917, £104; 1955, £lO4 10s; 1957, £lO4 2s Gd; 1959, £lO4 15s; 1961. £lO5 ss. Melbourne sales included: —National Bank (£5 paid). £6 15s; Commercial Bank of Australia, preference, £9 12s; Australian Glass, 8-1 s; New Morolio, £ls; Loloma, £5 7s; Emperor, 265; Mount Lyell, 19s 9d. BANK OF AUSTRALASIA SAME' INTERIM DIVIDEND LONDON, Auc. 29 Tho Bank of Australasia has declared an interim dividend of 3s 6d a share. The distribution is at an unchanged rate. Tho filial dividend last year was Is a share, making 7>J per cent lor the year, with a special centenary bonus of 2 per cent. Tho dividend is subject to British income tax of 4s Gd in tho pound, so that tho New Zealand shareholder receives about 3s 4d a share, taking exchango into account. JAS. J. NIVEN AND CO. EXPANSION IN PROFITS Tho annual report of .Tas. J. Niven and Company, limited, engineers, Wellington, for tho year ended March 31, shows a not profit of £9708, against £1054 earned in tho previous year. A dividend of 8d a share is being paid, absorbing £6033 and leaving £3675 to bo carried forward. No dividend was paid last year. At tho annual meeting in Wellington this week, it was stated that there had been a further increaso in tho volume of business handled. Apparently tho development of confidence had stimulated trade generally. There had been in industry a greater willingness to spend money on capital improvements.

Tho issued capital of the company iR now £153,834, tho shares having been written down from £1 to 17s during the year.