SOUTH AUSTRALIAN LOAN.

Dominion, Volume 1, Issue 301, 14 September 1908, Page 7

SOUTH AUSTRALIAN LOAN.

t 0 PROSPECTUS AND PRESS COMMENTS. (hi telegraph—ruisss association—coptkigut.) London, September 11. The prospectus' of the South Australian loan invites holders of maturing 4 per cents, to convert them into an equal amount of 3i per cents., with a cash payment of 475. 6d. per cent., holders retailing the January coupon for payment when due. Applications closo on September 15, and conversion takes plnco on' September 22. Tho "Westminster Gazette" says the South Australian loan looks reasonably cheaper as a lock-up investment. ■" The above appears to be purely a conversion issue, and is offered to the holders of the maturing 4 per cents. It is interesting to compare the probable results to the South Australian Government of this issue with what . was expected from the original scheme of salo to a private firm. This latter meant a net price to the Government of .£94 IDs. Under . the present proposal the Government will receive .£IOO, less £2 7s. Gd. cash payment, less. £2, the January coupon, and 12s. Gd. stamp duty, making the net amount .£95, or 10s. per '• cent, bettor than the first proposal. This is, of course, assuming that no underwriting commission is to bo paid. If the pries 'is as we assume .£95, it is, as the " Westminster Gazette" obsoryes, "reasonably cheap as o lock-up investment." South Australian,3J per cents, were quoted on Saturday at XM ss.