Purchasing the Freezing Companies.

Manawatu Standard, Volume XXXII, Issue 6059, 23 June 1897, Page 4

Purchasing the Freezing Companies.

MILLIONAIRE HOOLEY'S QBEAT SCHEME. (By Electric Telegraph—Copyright) (Per Press Association.) London, June 30. Mr Hooley has made public the detail! of -his schema for the purchase of the btunoessee of the meat companies of Australasia. He sees ilo reason, exceptjng want of combination, why Australian meat should not realise Id per lb more than at present-, this inoraate amounting to an additional £760,000 a, «ear for the colonies. Bis proposal is, if a sufficient number of freezing companies can be purchased, to amalgamate them with a larger capital than their present aggregate value. He proposes to purchase the old companies from the date of their balance-sheets, at a price equal to their net aasetß as shown by these balance* sheets, together with a bonus equal to aggregate amount paid in dividends during the last; seven years, or pro rata if the company has not been in existence sevsa years. . Ajs to pnrohase prioa his proposal is as follows The debenture-holders pr bankers who, have lent mobey to have the option of taking either five per coat, debentures, stock in the new ooznpady, or cash ; the trade creditors to receive ibe reserve funds to be repaid by a call on the debentures or by cash; owners of the remainder of the assets to receive one-third in cash, one-third m preference shares, and one-third m ordinary shares 5 the bonus to be paid halt in preference shares and half in ordinary, shares. - . ■ The capital of the proposed pooling company must depend on the amount to be paid to the companies joining, but it wUJ be divided approximately thus Th# assets of tbe companies purchased and the bonus will amount to about 60 per cent.; promotion money to 15 per cent., and the working capital 26 per capitalisation will be one-third in 5 per cent, first mortgage debentures, one-third in 7 per cent, cumulative prafereccb share's, and one-thirdin ordinary Board will administer the operations af 'he company. Two-thirds of the original Board will consist of nominees of the old companies, whUe local directors will also be appointed. The directors ol the companies absorbed may join in the, promotion of the scheme. ■ . . The amount to be paid to each company is not to exceed the share capital due to each company. The capital of the new undertaking may possibly reach Jour millions. . , , . Mr Hooley'a chief adviser in regard to the scheme is Mr Marshall Stevens, late Managing Director of the Manchester Ship Canal Company.