JOSEPH NATHAN AND CO.

Otago Witness, Issue 3774, 13 July 1926, Page 48

JOSEPH NATHAN AND CO.

CAPITAL REORGANISATION. SHAREHOLDERS’ SUPPORT. (FaoM Oub Own Cobbespondent.) LONDON, May 18. On May 6 separate class meetings of the shareholders in Josph Nathan and Company (Ltd.), were held at Glaxo House, at which, resolutions were submitted providing for the reorganisation of the company’s capital by writing down the ordinary shares by 18a to 2s. and the preferred ordinary shares by 9s to 11s. The preferred ordinary shareholders will, under the scheme, receive one 8 per cent, preferred ordinary share of the nominal value of 10s, and one new ordinary share of Is. The reduced ordinary shares will be divided into two new ordinary shares of Is each. Mr Alec. Nathan, in moving the resolution giving effect to the scheme, said: The arrangement appears to the directors, the large shareholders, and the experts they have consulted fair and equitable. The only important suggestion made was that “A” preference shareholders should contribute to the writing down as well as the preferred ordinary and ordinary. In answer to this, we originally consulted our legal and financial advisers and gentlemen of extended experience, knowledge and influence in the financial world, and they were unanimous, first, that it would not be equitable, and, secondly, that the court would not permit it to be done. This was the view your directors originally held. When it was confirmed by this independent source they felt they had no option other than to adhere to their original policy. More than 1750 of those most interested—the preferred ordinary shareholders —have definitely expressed their approval and stated that the scheme is a fair and just scheme. “Beyond the criticisms I have detailed to you we have had no other evidence that our scheme has not met with the approval of all our shareholders We have given them all the information asked for and there has been more than one month in which to examine the details On the other hand, we have received very gratifying approval of our proposals from shareholders, who by their eminent positions in commerce were able to and would undoubtedly come to well-informed and unbiassed judgments In these circumstances. I shall close by explaining that it ia a legal necessity for the class meeting of 8 per cent, preferred ordinary shareholders to approve end confirm the agreement entered into by a nominee for you with the company and with a representative of the ordinary shareholders, under which the scheme is outlined in the large white notice, which you have all received, is accepted as it affects your rights as holders of preferred ordinary shares. When this is done —and that is the only business before this meeting—the company can and will proceed in extraordinary general meeting to consider the scheme and put it into effect. This scheme has been submitted to 3000 holders of preferred ordinary shares. More than 1750 individuals have' given their votes totalling nearly 250,000 in support, which the directors can only regard as a vote of confidence in the scheme. At the meeting of the ordinary shareholders the resolution* were carried unanimously, at the meeting of the preferred ordinary shareholders they were carried with two dissentients and at the extraordinary general meeting of the company they were carried unanimously.” The proceedings then terminated.