TABLED last night after a lengthy delay were Caledonian Trust's terms
for taking over Bank of Edinburgh Group. It has been valued at around
#4m.
Set up a few years ago with the objective of absorbing several
building societies, it was intended to go into a wide range of financial
services.
The venture never really got off the ground, although it did once run
close to acquiring a major society in the English Midlands.
The chairman said last night that no alternative offers were being
considered and if Caledonian Trust was unsuccessful the board would
recommend placing the company in voluntary liquidation.
New Caledonian shares at 77.1p each to the net asset value of each
bank share are offered with a cash alternative valued at around #3.6m on
an adjusted NAV basis.
Trust chief executive Douglas Lowe said the offer provided an
excellent opportunity for Bank of Edinburgh holders to switch into a
growth sector at a discount, and for Caledonian to make further
attractive investments.
He claimed Caledonian funds were now standing at #8.3m (87.5p a
share). Ivory & Sime Enterprise Capital, with interests in both
companies, are accepting the share offer without election for cash.
The bank's management accounts showed an after-tax loss of #1m last
year with net assets totalling #4.4m.
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