ANZ makes offer for Grindlays

Press, 14 June 1984, Page 28

ANZ makes offer for Grindlays

NZPA-AAP Melbourne The ANZ Bank, Australia’s second largest private bank, yesterday announed a sAust2Bo million take-over bid for the U.K.-based Grindlays Bank. The take-over still needs Reserve Bank approval, but is virtually assured of success as the two major shareholders in Grindlays support the ANZ move. The bid for Grindlays, one of the top 10 banks in Britain, values each share at $4.25, which is $2 more than the Grindlays share price in London earlier this week.

The bid will mainly be financed by a one-for-four

rights issue to shareholders at $3.70 a share which will raise $225 million. ANZ’s chairman, Sir William Vines, said the acquisition would allow the ANZ to offer a worldwide service to its customers and expand the bank into profitable international regions. Sir William said the proposed entry of major foreign banks into Australia had also given an impetus to the bid because these banks could offer a wider range of services.

Grindlays operates 140 branches in 40 countries and is the largest foreign bank in India. The bid will be undertaken through a scheme of

arrangement which means that the ANZ will have to seek the approval of Grindlays shareholders and the British courts.

The two major shareholders in Grindlays, Citibank with a 48.6 per cent and Lloyds Bank with a 21.3 per cent stake, have "irrevocably undertaken to vote in favour of the scheme.” Sir William told a news conference in Melbourne that discussions on the takeover were initiated by the ANZ Bank late last year.

The ANZ bid will be funded mainly through a one-for-four rights issue which will raise $225 million from shareholders at $3.70 a share.