Far Eastern Insurance Ca., Ld., have been circularized by the two boards of directors who propose an amalgamation of the concerns.
The circular is as follows:—
An offer has been made by the Yangtsze Insurance Association, Ld., to the Far Eastern Insurance Ca., Ld., with a view to the amalgamation of the two companies. Your directors are of opinion that a fusion of interests will enable the joint business of the two companies to be conducted more profitable and more economically than under the existing system of working and that such fusion will be to the mutual advantage of both companies.
The following scheme of amalgam motion has been considered and approved by the directors of both companies (1) The Associatiam to issue new shares (out of their authorized unissued capital) of the nominal value of $10 each fully aid and allot them to the Far Eastern "o.'s shareholders in exchange for ther shareg in the ratio of one share in the Association for one share' in the Company.
(2) The Association further to make payment to the shareholders in the Company of the sum of Tls. 5 in cash for each one share in the Company held by such shareholders.
(8) Unless substantially the whole of the Company's shareholders agree within a reasonable june '0 exchange their shares upon the basis above mentioned the Association reserves to itself the right to withdraw this offer.
The acceptance of the Association's offer by a majority of the Company's shareholders _satisfactory to the Association would mot of course compel dissentient shareholders to exchange their shares for shares in the Yangtsze. They could continue to be shareholders in the Taw Eastern and would receive any dividends, etc., declared by that company.
A resolution authorizing the issue of a portion of the unissued capital of the Yangtsze Insurance Association, for the purpose of the acquisition of shares of the Far Eastern Insurance Ca. will be proposed at the annual general meeting of the Association to be held on May 19 next. If this resolution is carried, an offer will then be made to individual shareholders of the Far Eastern Insurance Ca. for the acquisition of their shares on the terms mentioned above.
Text read from the printed page and cleaned; old type leaves the occasional error.