BANK FUSION

Evening Post, Volume C, Issue 91, 14 October 1920, Page 7

BANK FUSION

AN AUSTRALIAN PURCHASE.

(UNITE* PRESS ASSOCIATION.—COPYRIGHT.)

(AUSTRALIAN - KEW ZEALAND CABLE ASSOCIATION.)

(Received October 14, 10 a.m.)

LONDON, 13th October

The Australian Press Association learns that the offer of the English, Scottish, and Australian Bank, Ltd*, to purchase the shares of the London Bank of Australia, Ltd., has been accented by over 90 per cent, of the holding. The fusion of the two banks named is thus assured.

[Under a. provisional agreement, dated 16th August, an offer was made by the E.S. and A. Bank to acquire all the shares of the London Bank of those shareholders who were willing to sell their shares on the terms offered and who accepted the offer on or before Ist October, 1920, provided that the holders of not less than 90 par cent, in nominal value o"T the issued shares, preferential and ordinary, of the London Bank, oi' such smaller percentage as the banks were willing to approve, accept the offer. A preference shareholder in the London Bank was to be entitled to receive from the purchaser bank at his option (a) allotment of shares in the E.S. and A. Bank of £25 each (£l3 10s paid-up), at the rate of five shares for every nine preference shares held (being equivalent to five-ninths of a share of the E.S. and A. Bank for every one ordinary share), together with '£2 per preference share in cash, or (b) £13 per preference share in cash. Similar terms were offered to holders of ordinary shares in the London Bank as regards the exchange of five shares for nine shares, plus £1 per share in cash; but without the option of cash in full. Section (c) of the offer read : "The holder ot ordinary shares (liability prepaid in the London Bank), who accepts the offer, will be entitled tr> receive from the purchaser ba.nk the .sum of £24 10s in cash for such ordinary share." The liabilities to the public of the fusing bank.'i are as follow :—E.S. and A., £14,195.757; London Bank, £9,649,334; a total of £23,845,091. The total assets of the combined institution* are £26,399,019.]