WAIROA MEAT WORKS

Evening Post, Volume CXIV, Issue 121, 18 November 1932, Page 10

WAIROA MEAT WORKS

OFFER TO PURCHASE

Details of the proposed sale of the assets and property of the AVairoa Farmers' Co-operative Meat Company, Limited, to the three freezing companies operating in Gisborne and Hawkes Bay, are contained in a circular letter to shareholders by Mr. J. S. Jessep, the chairman of directors of the company. Briefly, it is proposed by the directors that the offer of the three companies to purchase at a price of £40,000 be accepted, the purchasers to become' shareholders in a new company and the purchase price to be satisfied by the issue of 40,000 debentures of £l each, bearing interest at 5 per cent. Estimating the chances of running the works profitably, says the statement, the directors had taken as a basis last year's freezing charges* in Hawkes Bay and Gisborne and the cost and damage through transporting stock from Wuiroa to Hawkes Bay and- Gisborne. These freezing charges have since been: still further reduced and the position now is that the directors would require to have substantial guarantees such as would be acceptable to the banks as to the supply of stock to the company's works before they could confidently advise shareholders to proceed with the re-erection and operation of the works. In view of the present conditions in the sheepfarmiiiß industry the directors are loath to call up the remaining 5s of uncalled capital oii" each share. The only alternative is for extra finance to be found by shareholders or those directly interested by taking up preference shares. In. view of all the circumstances the directors accepted the offer from the freezing companies, subject to confirmation by the shareholders at an extraordinary general meeting on 10th December.