Forum Archive Index - April 2000

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>
> CAPREC: CEM: PROPOSED RETURN OF CAPITAL
> 
> Based on the closing price
> on Monday 17/04/2000 of $1.59, 1 in every 4 shares in the company
> held by each shareholder will; be cancelled and each shareholder
> will receive $1.59 for each share cancelled. Currently there are
> 40,443,809 shares on issue and this pro rata share cancellation will
> reduce the number of shares on issue to 30,332,856. The share
> cancellation and return of capital will occur in late July
> conditional upon settlement of the sale of NZ China Clays.
>
If the sale of China Clays is confirmed this is only a first step to 
giving shareholders their capital back.  This will return 
shareholders around  $15.9million, but the sale will net $40million 
so the question is what happens to the rest of the money?
>
>. There will be
> costs involved in the rationalisation and funds may also be required
> for the future development of Bendon.
>
I am not sure what the future of Bendon is.   Just another mass 
market importer of underwear?    Do they have a competitive 
advantage?   Clothing marketer LWR passed out of NZ hands at an offer 
price the independent valuation suggested was not fair or reasonable.
Does a similar fate await Ceramco? 
>
> However it is the intention of
> Directors to return additional funds to shareholders when possible.
>
How much capital does an underwear importer need?   I would have 
thought not a lot.     So does the fact that they are not returning 
more capital to shareholders indicate that they are planning to buy 
some other business?

Disclosure:  Ceramco shareholder myself who has no idea what they are 
up to.  SNOOPY


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