§ 57. Mr. Mulleyasked the Chancellor of the Exchequer if he will give particulars of the capital structure of the United Steel Companies, Limited, prior to the recent capital reorganisation authorised 340W by the Treasury; and the reasons for this reorganisation.
§ Mr. R. A. ButlerThe issued capital of the United Steel Companies, Limited, prior to the recent capital reorganisation comprised £5,097,000 4½ per cent. cumulative preference stock and £10,194,000 ordinary stock. The capital reorganisation included issues of shares in capitalisation of reserves and issues of securities to the Iron and Steel Holding and Realisation Agency for cash.
The issues in capitalisation of reserves were to make the nominal value of the share capital correspond more closely to its real value. The issues for cash were to enable the company to repay sums borrowed from the Agency for capital development and to meet further capital development already planned. The overriding purpose was to facilitate the return of the undertaking to private ownership.
§ 58. Mr. Mulleyasked the Chancellor of the Exchequer if he will give the percentages of the total capital of the United Steel Companies, Limited, represented by the debenture stock, preference shares and ordinary shares, respectively, before and after the reorganisation.
§ Mr. R. A. ButlerBefore the reorganisation one-third of the issued capital, at par value, was in cumulative preference stock and two-thirds in ordinary stock. Since the reorganisation the loan and issued share capital at par values is made up of approximately 30 per cent. debenture stock, 28 per cent. preference shares and 42 per cent. ordinary shares. A calculation on other than par values would, of course, produce somewhat different percentages.