Finance and Commerce
TASMANIAN PAPER PLAN
Amalgamated Zinc's Interest
Determined efforts by Amalgamated Zinc (de Bavay's) Ltd. and others to establish the manufacture of fine writing, printing,
and typewriting paper in Tasmania have resulted in a decision to form an operating company, as anounced in "The Argus" on April 9. The. directors of Amalgamated Zinc are recommending to their Shareholders that £150,000 of the company's funds be invested in the project.
Shareholders in Amalgamated Zinc and other interested organisations will also have priority over the general public in an issue of 325,000 £1 shares, and some of those organisations will benefit indirectly through an issue of 100,000 £1 deferred shares to Tasmanian Paper Pty. Ltd. for its assets. Amalgamated Zinc will not par- ticipate in options on issues of capital additional to the initial issue to be made shortly.
Burnie, Tasmania, has been chosen as the best locality for the manufacture of wood pulp and paper, and certain interests responsible for the flotation of the project have acquired a freehold mill site there, together with freehold forest areas and other concessions in the locality. Opera- tions, will be begun in the first instance with a unit capable of making 15,000 tons
of fine papers a year.
The company formed to establish the industry will have an authorised capital of £3,000,000, of which £1,200,000 in £1 shares will shortly be offered as a first
issue, as follows:—
(1) 625,000 £1 contributing ordinary
shares will be taken firm by Amal- gamated Zinc (150,000), North Broken Hill, Broken Hill South. the Zinc Cor-
poration, Electrolytic Zinc Company, and Australian Glass Manufacturers
(a total of 300,000), and other in- terests (175,000).
(2) 325,000 £1 contributing ordinary shares will be offered for public sub-
scription, shareholders in the interested organisations having priority of appli-
cation, subject to limited rights of application to vendors and Tasmanian residents.
(3) 150,000 fully paid £1 deferred
shares will be issued to Gerald Mussen and others as consideration for rights at Burnie and other matters.
(4) 100,000 fully paid £1 deferred shares
will be issued to Tasmanian Paper Pty. Ltd. as consideration for its assets, including concessions at Kermandie, Tasmania. Amalgamated Zinc owns approximately half of the capital of Tasmania Paper, the other share- holders, according to the latest infor- mation available, being the Electroly- tic Zinc Company, North Broken Hill, Australian Paper Manufacturers, and
a number of English interests, includ- ing Austral Development Ltd. and Ed- ward Lloyd Ltd.
Deferred shares are similar to ordin- aries, except that they will not rank for dividend until distributions totalling 6 per cent. have been paid on the 950,000 ordin- aries now to be offered.
The directors of Amalgamated Zinc have examined the proposals and have studied the technical and other reports, which will support the prospectus of the new company. In their opinion conditions favourable to the successful establishment
and operation of the industry are present to a satisfactory degree. They propose that the amount necessary to take up 150,000 £1 shares be transferred to an investment company, to be styled Zinc In- vestments Pty. Ltd., which will act as
nominee for Amalgamated Zinc.