EAGLE STAR NEW CAPITAL.
It would seem from the policy which 'is now being pursued by the Directors of the - Eagle Star and' British 'Dominions Insurance Company that there is confidence as regards future opportunities for further expansion and development, for it is proposed to increase the preference capital to £1,000,000 in 4 per cent. cumulative preference shares, holders of the existing 6 per cent. cumulative . preference shares of £3 each to be given 50 per cent. more capital, with the rate on the whole reduced to 4 per cent.; 'the existing £8 shares are to be divided into three shares of £1 so that the holder will have 14 10s. of 4 per - cent. capital instead of £8 of 6 per cent. There will remain £816,994 of the new 4 per cent. shares which are to be offered for public subscription at par, subject to preferential subscription rights to existing shareholders. - Inasmuch as the increased preference capital will rank in front of the preferred ordinary shares, which are of £3 each with 6s. per share paid up entitled to 8 per cent, cumulative dividends and a further 2 per cent, by way of participation, it is proposed that these preferred ordinary shares should carry 10 per cent. cumulative dividends.
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