THE TAYFORTH TAKE-OVER
Page 22
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PE news that agreement had been reached for the Transport Holding Company to acquire a s controlling interest in Tayforth Ltd., of Edinburgh, through the medium of a new holding company, was revealed on Tuesday.
Both boards stated that they and the principal shareholders—Coast Lines Ltd. and the Solsgirth Investment Trust— had agreed to the deal, and the directors of Tayforth intend to accept the offer in respect of their own shareholdings. (The Solsgirth Trust is a private company controlled by the deputy chairman of Tayforth, Mr. W. R. Alexander, and members of his family).
The intention is that THC will own a 75 per cent interest in the new company, while Coast Lines and Solsgirth will each hold .121 per cent so that the important trading links of these two concerns are not lost. This is the THC's wish. The new company will first acquire about 51 per cent of Tayforth ordinary shares and then offer to buy the remaining 5s. ordinaries for 21s. each. No offer is to be made for the £500.000 Tayforth preference stock.
By the terms of the offer, a value of £68m. is placed on the £1.55m. of Tayforth equity: the 5s. ordinary shares have been quoted at around 18s., but moved up this week.
A formal offer to Tayforth shareholders is to be sent out by S. G. Warburg and Co. on behalf of the Transport Holding Company. It was said on Tuesday that major holders who had indicated assent (including Coast Lines, Solsgirth and the Tayforth directors) amounted to over 66 per cent of the ordinary shareholding.
Tayforth Ltd., whose chairman is Sir William Duthie, is itself a holding company owning some 15 principal transport companies operating about 1,500 vehicles of all types, as well as a cold storage company, half a dozen dairy and poultry businesses and a property concern. It originated as the Dundee Ice and Cold Storage Co. Ltd. in 1898 and changed its name to Tayforth Holding Ltd. in 1960, and to Tayforth Ltd. in 1962.
In September, 1963, Coast Lines Ltd. acquired a 25 per cent interest in Tayforth, so adding road transport to its shipping holdings, which include Ulster Ferry Transport Ltd. (Coast Lines is already an equal shareholder with THC in David MacBrayne Ltd.).
Tayforth took over Siddle C. Cook Ltd. in July, 1964, for £225,000, the deal involving 57 vehicles and several specialist trailers. Then, in January this year, Hanson Haulage Ltd. and associated companies were purchased with shares and cash worth £1-68m. This addition of 200 vehicles and 115 trailers strengthened Tayforth's parcel haulage activities— already strong in Scotland, notably through Scottish Parcel Carriers Ltd. (formerly Forth Caledonian (Glasgow) Ltd.).
The transport companies in Tayforth now consist of:
Road Services (Caledonian) Ltd., Dumfries: Road Services (Forth) Ltd., Falkirk; Bell and Co. (Transport) Ltd., Edinburgh: Siddle C. Cook Ltd., Con,sett; D. McKitmon (Transport) Ltd., Kilmarnock: Scottish Parcel Carriers Ltd., Glasgow; A. Smith (Garvel) Ltd.. Darvel; Watsons (carriers) Ltd., Bishop Auckland; Caledonian Bulk Liquids Ltd., Immingham: Hanson Haulage (Huddersfield) Ltd., Huddersfield; Hanson Haulage (Leeds) Ltd., Pudser: Hanson Haulage (London) Ltd., Eel; Hanson Haulage (Tyneside) Ltd., Gateshead; John West and Sons (Liverpool) Ltd„ Liverpool.
Largest of the Tayforth companies is R.S. Caledonian, an ex-nationalized company now having about 440 vehicles, whose activities were featured in The Commercial Motor of June 25.
The Transport Holding Company intends that Tayforth should keep its own identity and continue under its present name and management.
Provisional figures for Tayforth's trading in the year 1964-65 showed a group profit of £652,150 (£545,400 after tax).