COLONIAL SUGAR CO.

Otago Daily Times, Issue 27383, 8 May 1950, Page 8

COLONIAL SUGAR CO.

Increase In Nominal Capital PA AUCKLAND. May 7. The Colonial Sugar Refining Company, Ltd., proposes to increase its nominal capital by £6.000,000 to £20,000,000 and then to increase issued capital by £2,340,000 to £14,040,000. Shareholders will be offered one new £2O share at a premium of £7 for every five £2O shares held on July 13. Transfers must be lodged 'at the company’s head office. Sydnev, before July 10. Proposals will be placed before shareholders at the annual general meeting on June 7. In a circular to shareholders, the board states it has decided that new capital is required to carry on the company s business in view of the present low purchasing power of the £ and the consequent heavy expenditure involved in the erection and equipment of new' factories, in increasing the capacity of existing factories, in meeting the ever-increasing cost of replacements, and in financing at higher prices larger quantities of sugar, raw materials and working stocks. The payment of £27 for each new share which may be made in Australian currency or its equivalent to the Auckland branch of the company, will be spread over a two-year period in three equal instalments of £9. Of this amount, £6 13s 4d will be applied to capital and £2 6s 8d to premiums. The first payment of £9 a share on application is due on September 30, and succeeding payments are due on September 30 of 1951 and 1952. The general manager of the company will be appointed as trustee for those shareholders who, by reason of the fact that their holdings are not exactly divisible by five, will become entitled to the rights of fractions of shares. He will have authority to sell these fractional rights and distribute proceeds among shareholders entitled to them. The board states that the amount of premiums was considered to be the lowest figure advisable under the existing circumstances. New shares will rank for dividend trom October 1. 1950.