PAPER MILL MERGER.

Manawatu Standard, Volume LVI, Issue 200, 14 July 1936, Page 7

PAPER MILL MERGER.

FINANCIAL ARRANGEMENTS. LONDON, July 11. 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 500,000 tons of newsprint, or over 60 per cent, of the total manufactured in Britain.

Bowaters, in order to ' provide part of tlm funds required, will create 500,000 6} per cent, cumulative preference snares, 700,000 71 per cent, cumulative participating preference shares, and 500,000 ordinary shares of £1 each. Tho 7} per cent, preference shares will be offered to the public, and the balance required will be provided by Bowlders’ cash resources and the issue by Edward Lloyd, Ltd., of 2,000,000 5 per cent, preference shares of £1 each.

A fusion of interests between Bowaters Mersey Paper Mill, Ltd., and Edward Lloyds, Ltd., resulted through the acquisition of Bowaters from Allied Newspapers of 80 per cent, of the ordinary share capital in Edward Lloyds. Ltd. In consequence of the fusion Lord Camroso, Lord Iliffe, and Lord Komsley retire from, the board of Edward Lloyds. Air Eric Bowater becomes chairman,' and Mr Percy Denson remains managing director and joins the board of Bowaters.