NEWSPAPER COMPANIES

Southland Times, Issue 20663, 19 April 1929, Page 8

NEWSPAPER COMPANIES

PROPOSED AMALGAMATION

CHRISTCHURCH AND AUCKLAND

INTERESTS.

(Per United Press Association.)

Auckland, April 18.

The amalgamation of the Auckland Star with the Lyttelton Times and Christchurch Star is foreshadowed in a circular issued to the shareholders of the Brett Printing and Publishing Company, Ltd., publishers of the Auckland Star.

The circular conveys to shareholders the recommendation by the directors in favour of the proposals of amalgamation which will be effected by the incorporation of the combined company under the name of New Zealand Newspapers, Ltd., having a nominal capital of £1,000,000 divided into 1,000,000 shares of £1 each, of which 582,500 shares fully paid up, will be issued Of the Issued capital 477,500 shares will be distributed to the shareholders of the Brett Company and 105,000 shares to the shareholders of the Lyttelton Times Company, Ltd. This will mean that the present shareholders of the Brett Company will receive approximately 16 fully paid shares in New Zealand Newspapers Limited for every 10 shares now held in the Brett Company. The amalgamation of the interests, provided it has the approval of the shareholders of both companies, will take effect as from April 1, 1929. Provision is made that the change will not affect the payment of the dividend to shareholders of the Brett Company for the year ended March 31, 1929 and which will be recommended at the same rate as last year, ten per cent., of which five per cent, has already been paid and a bonus of 2} per cent., making a total of 12} per cent. An extraordinary meeting of shareholders of the Brett Company is .called for April 26 to consider the amalgamation proposals. The present capital of the Brett Printing and Publishing Company is little short of £300.000 in £1 shares. The shareholders are therefore receiving 32/- in the new company for every £1 in the Brett Company. The capital of the Lyttelton Times Company is stated at £lOO.OOO in £1 shares and the Times shareholders therefore receive 21/- for every £1 in the old company.