LOAN AND MERCANTILE

Taranaki Daily News, Volume LIV, Issue 232, 29 March 1912, Page 2

LOAN AND MERCANTILE

A NEW CAPITAL BASIS. By Telegraph—Press AjMocfetion. . "Wellington, Thursday. J. he official statement issued of the rearranging of the New Zealand Loan and Mercantile Company's share and debenture capital shows that it is proposed to increase the share capital to £2,000,000, divided into preference and ordinary fully paid shares for £1,000,000 each, the former carrying a fixed dividend of 0 per cent. The debenture capital will be reduced from £3,296,339 to £2,000,000, carrying interest at 4 per cent. The share capital at present consists of fully paid shares of 10s each, and ordinary shares of £9 with 10s paid. In order to effect the changes proposed shareholders are asked, to provide a further sum of £5 per share oil partly paid shares, towards the payment of i- which the company will contribute from its reserve 15s per share. Ordinary shares will then stand at £5 10s fully paid, the other £3 10s to be cancelled outright, but arrangements will be made by which any shareholder unable or unwilling to pay the call may exchange his present holding of shares with 10s paid for fully paid shares of 10s, and be relieved of further liability. The call now proposed, plus the 10s already paid will amount to £1,013,052, to which will bedded a bonus from reserves of £187,This will be represented bv 5 per cent, fully paid preference shares for £553,065 a " d fjjHy P a 'd up ordinary shares for £647,/' GO. The remainder of the share capital will be provided partly out of the additional second debenture money and partly out of reserved profits. The bonus of 15s a share is receivable only b.v persons who pay the call on the existing shares. Holders may elect to paj the call in full and receive the whole los, or only pay half the call and receive 7s Gd, or pay nothing further, in which case they will receive fully paid shares for 10s, the amount at present paid up. r In the light of the profits earned bv the company during the past five vears shareholders who pay the call should receive about 7 per cent, on the capital invested, and those who elect to pay nothing further somewhat less. Just now all the shareholders are asked to do is to record their votes for or a «ainst the scheme. The question of payment 01 the, call can be decided later," when the call is made.