30th November 1970 - 30th November 2010
40th Anniversary Special
Caledonian buys BUA Press Release - 21st October 1970
40th Anniversary Special
Caledonian buys BUA Press Release - 21st October 1970
Followin the talks between Caledonian and Britsh & Commonwealth (the owners of BUA) the deal was agreed and a press release was prepared. This was issued on 21st October and was not to be released until 09:30 as can be seen.
Below is the transcript of the release that gave details of the takeover:-
Below is the transcript of the release that gave details of the takeover:-
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October 21st 1970
Released by
CALEDONIAN AIRWAYS;
Sussex House
High Street
Crawley, Sussex
Embargoed until 0930 Wednesday October 21st 1970
Caledonian buys British United
“Second Force” Airline to be formed next month
Caledonian Airways and British United Airways are to be merged to form a new “Second Force” airline at the end of next Month.
This follows an agreement reached last night between Caledonian Airways and the owners of BUA, whereby Caledonian will take over BUA on completion day - November 30th 1970.
Under the terms of the agreement, Caledonian will purchase the whole of the ordinary share capital of BUA at a price of £6,900,000.
£1 million will be paid as a deposit within eight days from today and the balance on November 30th 1970.
The sale includes all the present subsidiaries of BUA and does not include British Island Airways Ltd. which will continue its present activities.
Caledonian has also agreed to buy from a subsidiary of British & Commonwealth Shipping at a total cost of £5,007,093, three BAC One Eleven aircraft and spares which were acquired in March 1970 for use by BUA. British & Commonwealth have agreed to continue various aircraft loan and leasing arrangements that they previously had with BUA.
Caledonian will make a Rights Issue of 2,115,000 Ordinary shares of £1 each at £2 per share; and will issue at par £4,000,000 of 10½ percent Convertible Unsecured Loan Stock 1990/95, convertible up to 31st, December, 1980 into Ordinary shares at £2’ 5shillings per share. The £8,300,000 so raised will cover the purchase price and provide initial working capital for the Second Force airline.
Caledonian’s financial advisors are Industrial & Commercial Finance Corporation and Kleinwort Benson, who have underwritten the issue of shares and convertible loan stock.
The Hon. Anthony Cayzer, Mr A Bristow, Mr R L Cumming and Mr. A E Lemon will resign at once from the BUA Board. Mr J. Thomson will be appointed Chairman of the Board until completion. Mr A. Thomson, Chairman and Managing Director of Caledonian Airways, will be elected to the Board of BUA. A full reconstruction of the Board will take place after November 30th.
Airways lnterests (Thomson) Ltd, the controlling shareholder of Caledonian Airways (Prestwick) Ltd, will change its name to Caledonian Airways Ltd.
Under the parent company, scheduled services will be operated by British United Airways and charter services by Caledonian Airways (Prestwick) Ltd. Aircraft will carry the name “Caledonian//BUA)"
The staff of Caledonian and that of BUA were informed of the takeover by Mr Adam Thomson at special meetings at Gatwick Airport this morning.
Announcing the takeover today, Mr Adam Thomson said:
“It fell to Caledonian to attempt to form the Second Force airline recommended by the Edwards Committee - a recommendation endorsed by the Labour Government and actively encouraged by the present Government [Conservative].”
“I am delighted that my colleagues and I have been able to bring this to fruition”
“The new airline will provide an alternative source of stable employment in the airline industry and will contribute significantly to the national economy.”
Released by
CALEDONIAN AIRWAYS;
Sussex House
High Street
Crawley, Sussex
Embargoed until 0930 Wednesday October 21st 1970
Caledonian buys British United
“Second Force” Airline to be formed next month
Caledonian Airways and British United Airways are to be merged to form a new “Second Force” airline at the end of next Month.
This follows an agreement reached last night between Caledonian Airways and the owners of BUA, whereby Caledonian will take over BUA on completion day - November 30th 1970.
Under the terms of the agreement, Caledonian will purchase the whole of the ordinary share capital of BUA at a price of £6,900,000.
£1 million will be paid as a deposit within eight days from today and the balance on November 30th 1970.
The sale includes all the present subsidiaries of BUA and does not include British Island Airways Ltd. which will continue its present activities.
Caledonian has also agreed to buy from a subsidiary of British & Commonwealth Shipping at a total cost of £5,007,093, three BAC One Eleven aircraft and spares which were acquired in March 1970 for use by BUA. British & Commonwealth have agreed to continue various aircraft loan and leasing arrangements that they previously had with BUA.
Caledonian will make a Rights Issue of 2,115,000 Ordinary shares of £1 each at £2 per share; and will issue at par £4,000,000 of 10½ percent Convertible Unsecured Loan Stock 1990/95, convertible up to 31st, December, 1980 into Ordinary shares at £2’ 5shillings per share. The £8,300,000 so raised will cover the purchase price and provide initial working capital for the Second Force airline.
Caledonian’s financial advisors are Industrial & Commercial Finance Corporation and Kleinwort Benson, who have underwritten the issue of shares and convertible loan stock.
The Hon. Anthony Cayzer, Mr A Bristow, Mr R L Cumming and Mr. A E Lemon will resign at once from the BUA Board. Mr J. Thomson will be appointed Chairman of the Board until completion. Mr A. Thomson, Chairman and Managing Director of Caledonian Airways, will be elected to the Board of BUA. A full reconstruction of the Board will take place after November 30th.
Airways lnterests (Thomson) Ltd, the controlling shareholder of Caledonian Airways (Prestwick) Ltd, will change its name to Caledonian Airways Ltd.
Under the parent company, scheduled services will be operated by British United Airways and charter services by Caledonian Airways (Prestwick) Ltd. Aircraft will carry the name “Caledonian//BUA)"
The staff of Caledonian and that of BUA were informed of the takeover by Mr Adam Thomson at special meetings at Gatwick Airport this morning.
Announcing the takeover today, Mr Adam Thomson said:
“It fell to Caledonian to attempt to form the Second Force airline recommended by the Edwards Committee - a recommendation endorsed by the Labour Government and actively encouraged by the present Government [Conservative].”
“I am delighted that my colleagues and I have been able to bring this to fruition”
“The new airline will provide an alternative source of stable employment in the airline industry and will contribute significantly to the national economy.”
