§ Mr. Stanleyasked the Secretary of State for Industry on what criteria he bases his judgment that the Government's offer price of 6p per ordinary share represents a correct valuation of the shares of Alfred Herbert Limited.
§ Mr. KaufmanWe took into account the company's financial position and the market price of its ordinary shares. The Scheme of Arrangement under Section 206 of the Companies Act, 1948, under which the ordinary shareholders would receive 6p a share, was approved by holders of the ordinary shares at a meeting on 24th November 1975.
§ Mr. Stanleyasked the Secretary of State for Industry what is the rate of interest payable on the Government loan capital being made available to Alfred Herbert Limited.
§ Mr. KaufmanNo loan capital is being made available by the Government to Alfred Herbert Limited.
§ Mr. Stanleyasked the Secretary of State for Industry whether the ceiling of £25 million on the financial assistance being made available to Alfred Herbert Limited, that he announced on 9th July, still stands; and, if not, what is the additional amount of capital that he is willing to make available to the company.
§ Mr. KaufmanAs stated in the Resolution my right hon. Friend tabled in the House on 25th November 1975, it is proposed to make available to Herbert Ltd. £26,179,765 of which £25 million, subject to expenses, is to provide long-tern financial assistance to Alfred Herbert Limited and the rest is to buy its existing ordinary shares.
401W
§ Mr. Tom Kingasked the Secretary of State for Industry whether the present proposal for Alfred Herbert Ltd. was approved by IOAB.
§ Mr. KaufmanThe Board, when originally consulted, considered that receivership would be the best course. However, negotiations proceeded and the Board was kept informed. While not being asked to approve the financial terms of the settlement, the Board considered that in the circumstances the basis of the negotiation was not unreasonable.