Newcall tidies house

The company is offering to buy the shares back at the average NZSE listed price of 4.6 cents each.

Managing director, Jim Bracknell, says if all shareholders concerned sell their shares back to the company, the number of shareholders will be more than halved from 3,203 to 1,455.

Mr Bracknell says at the same time those shareholders holding less than 2,000 shares will be offered the opportunity to increase their portfolios to this level at the average listed price of 4.6 cents per share.

"We are involved here in a simple housekeeping operation."

"It is an expensive task complying with statutory notification obligations in respect of shareholders with very small shareholdings and this buy-back will reduce our costs quite significantly."

Mr Bracknell estimates the company could save around $52,000 a year by cutting back the number of shareholders, at a saving of around $30 per shareholder.

The company says once the buy-back is completed, its largest remaining shareholders will remain Thai-based Charoong Thai Wire & Cable, whose shareholding will be marginally increased to just under 33%.

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