talk
arrived at agreement. The letter from the executors and the notice to
be published . . . will give you the fullest information. These
documents are attached.
I
am very pleased that we have succeeded in acquiring control on such
favourable terms. We buy the 350,000 shares at ias. and get free option
on the 3,400,000 E. Transv. Consolidated during the period of the war
and two years thereafter.67
We
shall carry on at Clewer House for the time being. It will take time to
clean up the company and reduce the work to reasonable proportions. . .
.
The
great thing is that we are now C.E. for S. African Coal Estates and arc
back in the Free State. During the war nothing can be done in the way
of opening properties in the Free State, but, the Anglo American
Corporation is a 'permanent' concern and we have new gold-mining
business in sight—it may be ten and certainly five years delayed—to
replace older mines.
The
arrangements agreed upon were formally recorded in a letter addressed
to Anglo American Corporation by Syfrets Trust Company Limited on 23
January 1942. Anglo American Corporation acquired 354,361 shares in
South African Townships at a cost of -£177,180 105. od. At the
date of acquisition, the share investments of South African Townships
included 93,630 shares in African and European Investment Company:
453,000 shares in Lace Proprietary Mines; 488,000 fully paid shares in
Western Holdings, and 50,000 reserve shares in the same company (one
shilling paid). There were large holdings in other gold-mining
companies, as well as 200,000 shares in South African Coal Estates. The
shares taken over represented less than 10 per cent of the then total
shares of South African Townships (4,800,000 shares), but the agreement
with the executors provided for the transfer of administrative control
of Townships to Anglo American Corporation.68 By
" These options were subsequently sold at a considerable profit. 68
The relevant sections of the articles of agreement are as follows: '3.
The directors of Townships who hold their positions as nominees of the
estate and/or by virtue of the shareholding of the estate, shall be
required, in so far as the executors have the necessary power, to
resign their offices as directors at such time and in such manner as
will enable nominees of the Anglo American Corporation to be elected to
the board of Townships in the place of any or all of them.
4.
The executors recognize that the board of Townships as and when
reconstituted shall have the right, without reference to the executors,
to deal with all questions concerning administration and staff. . . .
5.
It is agreed that the reconstitution of the board of Townships will
necessitate the retirement of Mr. H. Jeppe from the positions of
chairman and managing director. . . .
8.
The executors undertake that in respect of its large shareholdings in
South African Coal Estates the estate will support the maintenance by
Townships of technical and administrative control of that company.
9.
The executors record the fact that they have received from the Central
Mining and Investment Corporation an undertaking that the corporation
will not now or
