NEW ZEALAND BREWERIES LIMITED.

Hokitika Guardian, 20 June 1923, Page 2

NEW ZEALAND BREWERIES LIMITED.

ISSUE OF £1,000,000 10% MORTGAGE DEBENTURE STOCK TO PUBLIC.

An announcement of considerable interest and importance is mado in another part of this issue. It relates to tho formation of a new Company, New Zealand Breweries, Limited, which concern is an amalgamation of ten of tho largest and most successful breweries in tho Dominion.

Tho prospectus states that the properties to bo acquired are the following well-known Breweries: —

James -Speight and Co., Limited, Dunedin. W. Straclian and Co., Limited, Dunedin. McGavin and Co., Limited, Dunedin The Crown Brewery Company, Limited, Christchurch. Ward and. Company, Limited, Christchurch. S. Manning and Company, Limited, Christchurch. .1. Staples and Co., Ltd., Wellington. I). J. Barry, Limited. Gisborne. The Lion Brewery, Limited, Auckland. Hancock and Co. (New Zealand), Limited, Auckland.

Tlie capital of the new Company is to ho £1.500,000, comprising 500,000 ordinary shares (which will bo allotted as fully paid up to the vendors), and £1.000.000 ten per rent. First Mortgage Debenture Stock, which is now being offered to the Public. SECURED 11Y TRUST DEED.

This issue of ton per cent First Mortgage Debenture Stock is limited to £1.000,000 and is secured by a Trust Deed in favour of The Now Zealand Insurance Company, Limited (as Trustee for i lie Debenture Stockholders) constituting a first specific charge on the freehold and leasehold properties of tin? Company and the movable machinery, and plant comprised in the valuations hereinafter mentioned and a first: Floating Charge on all its assets and undertakings. The Company is to lie at liberty to issu- further stock for the purpose of aeonirin.g further brewery, boitling and malting properties, plant and stocks in New Zealand.

INTEREST PAYABLE QUARTERLY. Interest will he paid ouarterlv free of exchange at anv branch of the Bank of New Zealand in the Dominion on the first days of October, January, April and July in each year. The first payment will lie made on the first day of October. 1923. calculated from the date of the final payment due at idiot ment.

Payment, of interest upon the Debenture Stock for three years from the first day of July. 1923. will he guaranteed by The New Zealand Insurance Company Limited, with whom will lie deposited by the Vendors approved securities for £3-15,000 in support of tho guarantee. REASONS FOR SALE.

Ji is stated that the present owners have decided to afford the public an opportunity of becoming financially Interested upon fair and reasonable terms in tlie important and successful brewing industry. The Vendors have been induced to dispose of their oldestablished and remunerative businesses so as to bring into effect certain reforms which they are led to tielicve are desired bv the public. One of these reforms if is suggested is that of abolishing what lias hitherto been contended as being "a restricted monopoly. ’’ 'Without an amalgamation of the chief interests it is impracticable to give effect to the desire of the public. The merger now proposed will enable the public not only to lieeome financially interested in the industry ill which they are so directly concerned, but also to obtain the particular beverage which they may desire. Another reform that is confidently expected will be brought about will bo ill the ili reel ion of limiting the goodwills to be paid in respect cd hotel properties to reasonable amounts. Hitherto, with tho various brewery firms in active competition for avonucs for the disposition of their outputs, goodwills have been paid for hotels far in excess of their intrinsic values, a position which, from a public point of view, was not beneficial. With this competition removed, excessive goodwills ought to lie abolished ; licensees should lie in a position to conduct their businesses upon more reliable lines; and the necessity of "tie-ing” public bouses, as understood by the public, should disappear.

The prospectus is an interesting and comprehensive document of twenty pages, and explains fully the scopo ol the new Company and the nature of tin* investment. It may he. obtained from, and applications for debentures may be made to, any member of it Stock Exchange affiliated to the Stock Exchange Association of New Zealand, the local Banks, Offices of any of the vendor Companies, or the interim Secretary, Accountants’ Chambers, 39 Johnston Street, Wellington. The list of applications will close on or before 9th July, 1923.