CHAIN STORES MERGER

Otago Daily Times, Issue 27357, 5 April 1950, Page 9

CHAIN STORES MERGER

Further Particulars Of Proposal

Further to the recent announcement of the pending merger of the two large chain stores, G. J. Coles and - Co., Ltd., Selfridges (Australasia), Ltd., a condition of Coles’ offer is that Messrs J. W. Austin and H. Phillips, respectively chairman and managing director of Selfridges (Australasia). Ltd., shall join the board of G. J. Coles, Ltd. A consideration will be offered by G. J. Coles. Ltd., to all directors conditionally upon their agreeing to refrain from active association with competitors in the variety chain store field for a reasonable time. The directors of Selfridges (Australasia). Ltd., announce that sales and net profits for the six months ended January 31 increased substantially. The proposed share exchange would bring forward a few years the ultimate gain that might be made in the value of shareholdings, and shareholders’ interests will be retained in an Australia-wide organisation, with its prospects of future expansion improved by the merger. The paid capital of Selfridges (Australasia). Ltd., is £285.000 in £1 ordinary shares. After the bonus issue the capital of G. J. Coles and Co.. Ltd., will be £2.016,969 in 7,467,876 ordinary 5s shares and 150,000 £1 8 per cent, preference shares. The merger will involve the issue of 1,425.000 ordinary shares, increasing the paid capital by £356.250 to £2 373 219 Selfridges- (NZ), Ltd., with a paid capital of £158,700 16s, is a partly-owned subsidiary of Selfridges (Australasial. Ltd. The New Zealand subsidiary was formed in October, 1936, and 27,250 £1 shares were allotted as fully paid to the promoting company, which also took up 47,850 contributing shares of 16s each. A total of 67,150 contributing shares was also made available to the public, the shareholders of the parent company being permitted to apply for one share in the New Zealand subsidiary for every two held. The shares are quoted on the unofficial list of the New Zealand Stock Exchange.