WHAKATANE PAPER

Otago Daily Times, Issue 26559, 6 September 1947, Page 3

WHAKATANE PAPER

REORGANISATION OF ASSETS The scheme for reorganisation of Whakatane Paper Mills, Ltd., centres on the new company, Whakatane Board Mills, Ltd., which, as recently announced, will acquire the “ active ” assets. The new company, registered in New Zealand, has a nominal capital of £1,750,000 in 750,000 5 per cent, cumulative preference (participating to 7 per cent.) and 1,000,000 ordinary shares of £1 each. The present company, whose name will be changed to Matea Forests. Ltd., will retain the “•inactive ” assets. Whakatane Board Mills, Ltd., in part payment for the assets transferred to it, will issue fully-paid preference and ordinary shares, to be allotted as follows: —139,574 preference shares to holders of 139,574 preference shares in Whakatane Paper: 770,000 ordinary shares to ordinary shareholders on the basis of 20 for each 55 ordinary shares held; to preference shareholders 69,787 shares on the basis of one for every two preference shares held. Preference shareholders will receive cash equal to three years’ dividend at 7 per cent, per annum, clear of New Zealand social security tax (involving payment of £29.311); one ordinary share in the new company for every two preference shares now held; and one preference share in the new company, carrying from July 1, 1947, 5 per cent, dividend (participating to 7 per cent.) for eacli preference share now held). Preference shareholders will relinquish any further claim to dividend arrears which totalled £105,000 as at December 31, 1940, and the existing preference shares will he cancelled.

Ordinary shareholders will receive, for each 55 ordinary shares held, 20 fullypaid £1 ordinary shares in the new company and 55 fully-paid 8s ordinary shares in Matea .Forests, Ltd., which will be left with the Pukahunui plantation, as substantially its only asset, and must be regarded as purely a forestry company. Reduction of the old company’s capital by £1.153,150 to £708,770 will include £357,230 lost capital, as Matea Forests, Ltd., capital will be 1,921,920 ordinary shares fully paid to Bs. It is intended to apply for Stock Exchange listing of the Board Mill shares. The proposals must be approved by shareholders and the reduction in capital confirmed by the Supreme Court of New South Wales. * The directors say they expect that, if the scheme is adopted, preference dividends will be paid regularly in future, while elimination of all arrears of preference dividend will materially improve ordinary dividend prospects. Whakatane Paper claims to have about 12,000 shareholders, approximately half of whom are in Australia.