A BIG MEAT DEAL
UNION COLD STORAGE'COMPANY BUY UP EASTMAN'S, LIMITED. h From Our Special Correspondent. p Palmerston fjorth, September U. s Tho-London "Daily Chronicle" and the c "Daily Express" of August 2 contain ;l some information which should be of considerable interest to meat producers of the Dominion, as showing that there are other bis monopolies :it work besides the American Meat Trust whose operations may nt any time become, a menace to New Zealand trade. '.''he first announcement mado in con- " ncction with the matter was in the jj "Chronicle." which published the follow- [ ing:—"A his? meat deal is on the point j i of being effected, the effect of which will o
he that the Union Cold Storage Company, tho largest cold storage undertaking in the world, will purchase the business of Messrs. Eastman's, Limited, which has rotail shops in London and all over tho United Kingdom. Thero has lieon a big rise in the value of Eastman shares on tho Stock: Exchange, and a few flays ago tho directors announced that negotiations for the sals of the business were in progress. It was not until Saturday that they stated that a conditional agreement had been entered into whereby Mesrs. Vestey Bros, undertook to purchase the whole of the shares of Eastman's by an exchange of prefcronco shares in the Union Cold Storage Company: Pour members of tho firm of Vestey Bros, are on the board of tho Union Cold Slorage Company."
On August 2 the "Daily Express" had the folioiving:—"Speculation ;;a to the identity of the prospective purchasers of tho shares of Eastman's, Limited, is now set at rest by an official circular from tho company. This states that a provisional agreement has been entered into with Messrs. Vestey Bros., wherejiv the latter agree to purchase the whole of Eastman's shares on the following terms: Eor every two Eastman's ordinary shares tho purchasers give three 7 per cent, cumulative preference shares of £1 each in the Union Cold Storage Company, Ltd. For every three Eastman's preference shares the purchasers give four 7 per cent, cumulative preference shares of £1 each in the Union Cold Storage Company, Ltd. In the event of a sale In volving tho delivery of a fraction of a 7 per cent, preference share of the Union Cold Storago Company, the purchasers will, instead of transferring such fraction, pny to the vendor the same fraction of life. 6d., which is taken as the present market value of Union Cold Storago 7 per cent, preference shares The compensation to the directors will be 60,000 Union Cold Storage 7 per cent, cumulative preference shares. The dividend on the latter is due half-yearly, the next half-year's dividend being payable on November 1. The agreement is conditional upon acceptance -in or before August 11 by- shareholders holding 95 per cent of each class of shares, or such less percentage as the purchasers may requiro.
"Taking the shares of Eastman's, Ltd., and tho Union Cold Storage Company at par, tho offer is equivalent to tho payment of a premium of 50 per cent, on the ordinary Bhares and 33 and 1-3 per cent, on tho preference shares; or, taking the 7 per cent, preference shares of tho Union Cold Storage Company at the market valuo of 18s. 6d. per share, the offer i 9 equivalent to 275. 9d. for each ordinary share in Eastman's, and 245. Bd. in tho case of the preference shares. On the new investment the return to jtho Eastman's preference shareholders would bo 0 1-3 per cent, against 8 per cent, as at present, and the return to the ordinary shareholders a steady 10J per cent., as against a fluctuating percentage. In the last five years the Eastman's ordinary dividend has averaged 5J per cent." The Union Cold Storage Company Is the world's largest cold-storage undertaking. Its share capital is .£4,780,000, and there are also .£1.133.800 of debentures, The issued capital of Eastman's. Ltd., amounts to .£1,126.490, of which i 000.170 is in preference shares and .£62G,320 iu ordinary shares. Sir William Yestey, the managing director of the Union Cold Storage Company, is Gl years of age, and was created a baronet in tho year before tho war.
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Dominion, Volume 13, Issue 305, 18 September 1920, Page 10
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704A BIG MEAT DEAL Dominion, Volume 13, Issue 305, 18 September 1920, Page 10
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