Postby dognose » Thu Apr 01, 2021 5:31 am
NEW CAPITAL ISSUES
Lacloche Freres, Limited. — Formed to acquire the business of jewellers, hitherto carried on by Lacloche Fréres: at Paris, Madrid, San Sebastian, Biarritz, and elsewhere, and to add to it the succession to Streeter and Co., Limited, 18 New Bond street. The profits as certified seem to have been large, but the price to be paid for the business looks excessive, as there is very little property to be acquired. "It is too much to ask investors to be satisfied with a statement like the following :— It will be seen by the following that the entire Preference issue is covered by assets. Cash assets arising from this issue, £210,000 ; profits earned to November 16th, estimated, £17,000 ; leaseholds, fixtures, &c., £30,000; total, £257,000.” This tells the subscribers that they will possess the security of their own money. It is true that out of the £210,000 mentioned in the foregoing statement £120,000 is to be utilised for the purchase in cash of the stock-in-trade of Lacloche Fréres at actual cost price, such price to be verified by experts to be appointed by the directors of this company. Three out of five of these directors are Messrs Lacloche Fréres themselves. The purchase price, which goes through two syndicates, is £260,000, of which £130,000 is to go to Lacloche Fréres, and of this no less than £100,000 is for goodwill. On the whole, the British investor will probably think that his French friends are asking too much for their whistle.
Source: The Economist - 21st January 1905
Trev.