COMBINE OF BREWERIES

Otago Witness, Issue 3613, 12 June 1923, Page 29

COMBINE OF BREWERIES

CAPITAL OF £I,SCO,COO. 10 PER CENT. ON DEBENTURES. The details in connection with the amalgamation of breweries in New Zealand are now nearly completed, and it is expected that the prosjiectus of the new company will be issued throughout New Zealand in the next few days. It is no secret that an important meeting of proprietors and directors of brewery companies is at present being held in Wellington to deal with certain factors which require settling, but it is not expected that any delay will occur in this connection. Ihe promoters of the scheme have been engaged on their work for some months, and a definite arrangement has been arrived at as regards the share capital. The combine will consist of £I.OCX),COO worth of debentures, each debenture being of £IOO. A return of 10 per cent, is guaranteed on these debentures for three years. Then each applicant who is allotted a debenture of £IOO is entitled to apply for 20 shares—that is, one-lifth of the value of each debenture can be obtained in the share issue. In this way 2*00,000 shares will bo absorbed. The remaining 300,000 shares will be held for future distribution. The companies included in the combine are : Speight and Co., Strachan and Co. (private companies), and M’tiavin and Co. (capital £20,000) —all of Dunedin. Ward’s (£IOO,OOO capital), The Crown (£86,400 capital), and Manning’s (£95,000 capital!—all of Christchurch. The Crown and Manning’s have not yet finally decided :o join, but the shareholders of these two were expected to ratify joining the combine at meetings held yesterday. Staples and Co., Wellington. Barry’s, Gisborne. Lvon and Co. and Hancock and Co., Auckland. Other companies can come in if they desire. It is expected that there will be no difficulty in floating the new company. Tho object of the flotation is, of course, to interest the general public in the liquor trade and give it a greater measure of safety on the occasion of the triennial elections.