TODD MOTOR CORPORATION LIMITED

Waikato Times, Volume 122, Issue 20500, 17 May 1938, Page 8

TODD MOTOR CORPORATION LIMITED

PREFERENCE SHARE IBBUE In the Times to-day Financial Services, Limited, publish the prospectus relating to an issue of 250,000 preference shares in Todd Motors Corporation, Ltd., carrying preference as to dividends payable out of profit (6 per cent cumulative) and as to capital in the event of the company being wound up. In order to make the position of the preference shareholders undoubted the company will, before it makes any distribution by way of dividend to holders of ordinary shares, create a preference dividend equalisation fund of £30,000, or sufficient to pay the full dividend for a period of two years. The Corporation is being formed to acquire all the shares in two wellestablished companies—Todd Motors, Ltd., and Todd Motor Industries, Ltd. These have hitherto been private companies, family concerns, and it has been decided to broaden the proprietary base by making them a public company. The ordinary shares will be part of the payment to the vendors, and the preference shares are to be offered for public subscription on the basis outlined —6 per cent, cumulative. with the added proviso that a special reserve of £30,000 must be created before the holders of the ordinary shares can participate in aqy distribution of profits. Further, the profits of the two companies as at March 31. 1938, less income tax, will be used to create a reserve account. Steady Development

The history of Todd Motors, Ltd., from a business established in Central Otago in 1592. has been .one of continuous .development and the two businesses, which are mow to be converted into a public. company, are known throughout the Dominion. .The prospectus published gives particulars of the individual and combined balance sheets of both concerns, the valuations of assets and the earning capacity of the enterprises. The change will not involve the new company in any expense for flotation expenses in any way, for under the agreement these are to be borne by Todd Motors, Ltd- The Corporation will continue the business of importing and assembling. and the distribution of motor vehicles, and it will hold the distributing franchise for several well-known makes of both British and American cars and trucks.