TIMARU BREWERY

New Zealand Herald, Volume LXXIII, Issue 22404, 28 April 1936, Page 13

TIMARU BREWERY

REPORTED SALE PURCHASER NOT DISCLOSED SHARP RISE IN SHARES [by telegraph—own correspondent] CHRISTCHURCn, Monday The shares of the Timaru Brewery Company rose sharply on the Christchurch Stock Exchange to-day, when a report was received from Timaru that the business had been sold as a going concern. The purchaser was not disclosed, nor was the price paid, but it was said that the sale had been made subject to ratification by the shareholders. Rumours of a contemplated sale to New Zealand Breweries, Limited, have been current for some months and have stimulated interest in the shares of the Timaru company. Officials of the Timaru <*ompnio r would not confirm or deny the report. Mr. E. G. Kerr, chairman of directors of the company, said he had nothing to add to the report which had appeared in Timaru newspapers. It was probable that the shareholders would be called together in a few weeks for a discussion, but that in the meantime 110 details could be given. Any action of the directors would have to be ratified by the shareholders. Mr. D. W. Madden, chairman of New Zealand Breweries, Limited, who paid a visit to Timaru last week, said in a telephone conversation from Wellington that he knew nothing of the sale. When he was in Timaru there had been no sale and ho had heard of nothing since. "The news from Timaru is much ahead of anything that J have in my mind," he said. Last month it was announced that the call of 2s 6d a 10s share owing on half the £48,400 capital of the Timaru Company would be made, making the two issues of shares fully paid to 10s. The company last year had its most successful year since 1931, the net profit. earned being £2963. A dividend of 6 per cent was paid, for the year. Early this year buyers began to take an interest jn Timaru Brewery shares, the contributing, at 7a 6d paid, being valued at about 9s 3d and the fully paid at about 12s fid. After the announcement in March the value continued to rise slowly, sellers being few and far between. At the end of March it was believed in some quarters that New Zealand Breweries were negotiating for the purchase of the company and the price rose to 14s buyers, with no sellers. The price to-day was 15s 4d buyers and 16s sellers for the old fully paid and 15s 3d and 16s for the new issue, with sales of both at from 15s 4d to los 7d. The market was very firm in the afternoon.