AMALGAMATION OF HEAT COMPANIES.

Otago Witness, Issue 2663, 29 March 1905, Page 7

AMALGAMATION OF HEAT COMPANIES.

THE TERMS OF THE ARRANGEMENT.

The terms of tho amolgamation oE the business of the Now Zealand Refrigerating, Company with that of the Chris tchurch

Meat Company are set out in a circular issued to the shareholders of the for-mer ijompany by their directors, who state that the proposal is the result of serious consideration which they have given for some time past to the question of what steps Should be taken " to place the business of ifche company on a more satisfactory footing. The 5 terms and conditions of the proposed amalgamation, as formally agreed l to by the "•directors of both companies, subject to the approval and confirmation of their respective shareholders, are as under:—

1. The meat company agrees to take over ihe business of the refrigerating company as a going concern on the Ist of May, 1905, or at an earlier date if the voluntary liquidation of the refrigerating company shall take place ■before then.

2. The meat company accepts the last published balance sheet of the refrigerating company for the year ended 30th June, 1901, as correct, and takes over all the refrigerating PQBUjany's liabilities and, assets as on, the date

of the amalgamation together with all contracts and agreements current at that date. 3. Every holder of one £5 ordinary share in the refrigerating company paid up to £3 per share shall receive one £i share hi the meat company paid up to £2 per share. 4. Every holder of one £5 preference share in the refrigerating company paid up to £3 per share shall receive £3 per share in cash plus interest a-t the rate of 6 per cent, per annum for the period from Ist July, 1904, to date of payment. 5. In the event of a dividend being declared by the directors of the meat company at or after the termination of their current financial year the new issue of £4 shares, which shall form the basis of the amalgamation, shall participate in any dividend paid by the Christchurch Meat Company to accrue on this issue of shares as from May Ist, 1905.

6. The meat company guarantees that at all times when either of the Otago works are open they shall be piepared to freeze on owners' account at whatever may be the current South Island rates at the time.

7. An advisory board consisting of three of the present refrigerating company's directors will be appointed by the meat company to confer with the board of directors of the meat company upon any matters affecting the business of the company and the frozen meat industry in Gtago.

The directors of the re frig-eta ting company, having given the matter their most careful and earnest consideration, inform, the shareholders in the circular that they have no hesitation in strongly recommending them to agTeo to the proposed union, for they are confident that not only the interests of shareholders but the welfare of the frozen meat industry -will be benefited by. the proposed consolidation of interests.