SALE TO STATE

Otago Daily Times, Issue 26479, 5 June 1947, Page 6

SALE TO STATE

WESTPORT COAL COMPANY TENTATIVE AGREEMENT MADE P.A. WELLINGTON, June 4. The Minister of Mines, Mr McLagan, in a statement to-day announced that as a result of negotiations with Mr James Begg, chairman of directors, and Mr J. S. Jack, general manager of the Westport Coal Company, Ltd., a tentative agreement had been reached for the sale ot the company’s entire. undertaking to the State. The Minister stated the agreement was, of course, subject to - ratification by the shareholders of the Westport Coal Company, who- were being, acquainted with’the position by a circular from the company’s head office at Dunedin. >ln the event of the agreement being ratified, the sale would include the Birchwood Coal Company’s colliery at Ohai, in which the Westport Coal Company was a substantial shareholder.

The’Minister stated that Mr Begg had approached him and stated that in view of the Government’s - announced policy of nationalisation of coal mines, his company had no desire to be obstructive; and was willing to negotiate for the sale of its undertaking to the State. The negotiations had been conducted on a very friendly basis, and Mr McLagan considered the proposed purchase price was fair, both to the shareholders and to the State.

In the event 'of the- proposed sale being ratified, details of the purchase. would be announced. '

ADVICE TO SHAREHOLDERS Mr Begg stated last night that a circular had been sent out to all shareholders advising .-.them'to retain their shares, an'd. stating that further information would, be forthcoming at an early date. - The object of the circular, said Mr Begg, was ,to prevent any speculation in the shares.