BUILDING SOCIETY MERGER PLANS

Press, Volume CVIII, Issue 31762, 20 August 1968, Page 16

BUILDING SOCIETY MERGER PLANS

The Mutual Benefit Building and Investment Society of Canterbury and the Christchurch Building and Land Society, propose merging into a new society called the Christchurch Mutual Building Society.

Four fully paid 100 c A shares in the new society will be offered for every three fully paid A shares in the merging societies, if the proposal is approved.

Directors of both societies unanimously recommend consenting to the merger, which if approved will come into effect on October 1. Dividend Forecast Both societies intend paying a 10 per cent dividend for the current year to September 30 and are confident of paying a dividend of at least 7| per cent after the merger. This is equivalent to the present 10 per cent dividend on the pre-merger capital. After the merger, the A ordinary capital of the new society will be $753,947 against a combined $565,460 at the moment.

For the merger $188,487 will have to be capitalised but will be tax free.

Directors of both companies say that a merger would be in the best interests of all members and shareholders. A merger would increase growth potential and financial strength, provide funds for financing home ownership, and improve efficiency. Holders of other types of shares in the present societies will be offered equivalent shares in the new society. Shareholders’ Funds When the merger is completed, the shareholders' funds of the Christchurch Mutual Building Society will be $941,482, out of total liabilities Of $2,326,919. Stock exchange listing will be sought