FUSION OF BANKS

Dominion, Volume 14, Issue 17, 15 October 1920, Page 7

FUSION OF BANKS

London, October 13. The Australian Press Association learns that the cfFer of the English, Scottish, and Australian Bank, Ltd., to purchase the shares of the London Bank of Australia, Ltd., has been accepted by over 90 per cent, of the holding. The fusion of the two banks namec( is thus assured. —Aus.-N.Z. Cable ,Assn. [Under a provisional agreement, dated August 16, an offer was made by the English, Scottish, and Australian Bank to acquire all the shares of tho London Bank of these shareholders who were willing to sell their shares on the terms offered and who accepted the offer on or before October J, 1920, provided that the holders of not less than 90 per cent, in nominal value of the issued shares, preferential and ordinary, of the London Bank, or such smaller percentage as the banks were willing to approve, accepted tho offer. A preference shareholder in the London Bank was to be entitled to receive from the purohaser bank at his option M allotment of shares in the E.S. and A. Bank of J25 each (.£l2 10s. paid-up), at the rate of five shares for every nine preference' shares held (bein» equivalent to five-ninths of a share of the E.S, and A. Bank for every one brdinaj'y share), together with .£2 per preference share in cash, or (b) .£l3 per preference share in ca°li. Similar terms were offered' to holders of ordinary shares In tho London Bank as regards the exchange of five shares for nine shares, plus £ 1 per share in cash; butt without the option of cash in full. Section (c) of tho offer read: "The holder of ordinary shares (liability prepaid in the London Bank), who accepts the offer, will be entitled to receive from the purchaser bank the sum of 10s. in cash for suoh ordinary share. The linbilitios to the publio of the fusing hanks are as follow:—E.S. and A., .£14,195,757; London Bank, .£9,610,334: a total of £23,845,091. The total assets of the combined instiare .£26,399,019."]