BANK MERGER

Rotorua Morning Post, Volume 1, Issue 20, 16 September 1931, Page 3

BANK MERGER

Press Association —

shareholders agree NECESSARY TO AVOID OVERLAPPING OF SERVICES ADVANTAGES ALL ROUND Rec. Sept. 15, 9.40 p.m.

■Copyright.

.Dy — drusL ouivice. SYDNEY, Tuesday. Extraordinary meetings to-day of shareholders of the Australian Bank of Commerce Ltd., and the Bank of New South Wales approved of the proposal for a merger of these banks. The shareholders of both banks authorised the . directors, by resolution, to take the necessary steps to give effect to the merger. • Sir Mark Sheldon, chairman of directors of the Australian Bank of Commerce, said he was not long in coming to the conclusion that to link up with the Bank of New South Wales was the -best thing to do, as he realised that tliere must be for some years some contraction in business turnover, and in prices generally, nor did there seem to be much likelihood of normal profits being made in the usual way in the exchange business. The board expressed the opinion that there was too much overlapping in banking facilities and the possibilities of extension in Australia would not be at all reassuring for a considerable period. When the board approached the Bank of New South Wales they found the directors of that institution very much of the same opinion, but more particularly with regard to the overlapping and duplication of banking facilities. As a result there was a frank exchange of figures resulting in their Teaching a basis for the proposed merger, namely 64,000 £20 shares in the Bank of New South Wales paid to £20, as the value of the .shareholding in the Australian Bank of Commerce, Ltd. The directors claimed that the amalgamation would be of as much advantage to the Bank of Commerce as to the Bank of New South Wales, which was one of the strongest banking institutions. Mr Thomas Buckland, president of the Bank of New South Wales, speaking at this banks shareholders' meeting, emphasised that the board had satisfied itself, after due examination of the figures, that the Australian Bank of Commerce had a thoroughly sound business which was likely to prove a very valuable adjunct to the Bank of New South Wales. The shareholders duly authorised the board to increase the capital of the Bank of New South Wales from £7,500,000 to £8,780,000 by the creation of 64,000 new shares of £20 each and to issue these as fully paid up, for the purpose of the merger.