PAPER MERGER

Evening Post, Issue 11, 13 July 1936, Page 10

PAPER MERGER

FINANCING OPERATIONS

(Received July 13, 2 pjn.)

LONDON, July 12.

When the Bowater-Lloyd paper mill merger is completed by the acquisition of 830,890 ordinary £1 shares of the Edward Lloyd Investment Company from Allied Newspapers, Bowaters will control a combined annual output of half a million tons of newsprint, or over 60 per cent. of.the total manufactured in Britain. Bowaters, in order to provide part of the funds required, will create half a million 6J per cent, cumulative preference shares, 700,000 74 per cent, cumulative participating preference shares, and half a> million ordinary shares of £1 each. The 7i per cent, preference shares will be offered to the public, and the balance required will be provided by Bowaters' cash resources and the issue by Edward Lloyd, Ltd., of 2,000,000 5 per cent, preference shares of £1 each.

A London cable published on. Saturday stated that a fusion of interests between Bowaters Mersey Paper Mill, Ltd., and Edward Lloyds, Ltd.; had resulted through the acquisition by Bowaters from Allied Newspapers oE 80 per cent, of the ordinary share capital in Edward Lloyds, Ltd. In consequence of the fusion Lord Camrose, Lord Iliffe, and Lord Kemsley retire from the board of Edward Lloyds, Mr. Eric Bowater becomes chairman, and Mr. Percy Denson remains managing director and joins the board of Bowaters.