TAKE-OVER OFFER

Press, Volume CV, Issue 31005, 10 March 1966, Page 22

TAKE-OVER OFFER

Rid Ry Reid Rubber (N.Z. Press Association) WELLINGTON, March 9. Directors of Rubber Distributors Ltd., rubber goods importers and manufacturers, advise that they have received notice of the intention to make a take-over offet from Reid New Zealand Rubber Mills and they recommend acceptance. Brief details of the offer are: For each ordinary share in Rubber Distributors, Reid Rubber offers one ordinary share. For every two A preference shares in Rubber Distributors, Reid Rubber Mills offers one ordinary share or 13s 4d in cash for each A preference share or any combination of these two alternatives. For each B preference share in Rubber Distributors Reid Rubber Mills offers one 10s 5 per cent cum preference share. Reid Rubber will permit Rubber Distributors to pay ordinary dividend of not more than 9 per cent for the year to March ,31 and usual dividend on its preference shares. New ordinary capital issued to shareholders of Rubber Distributors will not participate in the interim dividend usually payable in June, but will participate in final dividend for the year ending August 31 —usually payable in December. New preference capital will receive the usual 21 per cent dividend in October. The offer is conditional on acceptance by holders of at least 60 per cent of issued shares and on shareholders of Reid Rubber Mills converting sufficient of its un-issued ordinary capital to preference shares ranking pari passu with its existing preference shares. Reid Rubber however, reserves the right to waive the requirement as to the percentage of acceptances. The offer remains open until May 3. and the latest date upon which it can be declared uniconditional is May 13.