COMPANY MEETING
BOOKER BROS., McCONNELL CORENTYNE MERGER APPROVED AN extraordinary general meeting of Booker Bros., McConnell and Co., Ltd., was held on Monday, October 3oth, at 14, Trinity Square, London, E.C., to consider resolutions increasing the capital and approving an agreement for amalgamation with the Corentyne Sugar Company, Ltd.
Sir Alfred P. Sherlock (the chairman) said that this was not a new idea, but was to some extent the result of the friendly relations which had existed between the two companies for many years and the logical outcome of present-day conditions in British Guiana, where they were faced with increased taxation and labour difficulties. The amalgamation would strengthen their manage- ment, and they welcomed Mr. C. A. Campbell and Mr. E. R. Campbell to the board. Then it would consolidate their position in the Colony, where the amalgamated company would represent about two-thirds of the sugar industry instead of about half, as they now did. Another great gain would be the substantial econo- mies which would result—it was just as easy to sell 120,000 tons of sugar as 90,000—and they also eliminated possible competition.
They proposed to exchange for every x2 shares of $r each of the Corentyne company two 6 per cent. Cumulative Preference shares of Li each and one fully paid Ordinary share of Lx. If the amal- gamation scheme was approved, the board had agreed to purchase the goodwill of Curtis Campbell and Co.'s business in London for 2o,000 6 per cent. Cumulative Preference shares or a payment in cash of L25,000, and had also arranged to take over the business of a subsidiary, Campbell Bros., Carter and Co., Ltd., at a price to be decided three years hence by their respective accountants, but not to exceed £2 for every Li share.
The assets which they were taking over were more than twice the amount of the proposed new issue, while the estimated profits amounted to rather more than three times the interest required to meet the dividend on those shares. The proposed scheme would put the company into the position of being one of the leading sugar companies.
The resolutions were carried unanimously, and the proposed increase of capital was approved at a separate meeting of the Preference shareholders.
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