COLONIAL SUGAR COMPANY

Dominion, Volume 8, Issue 2421, 29 March 1915, Page 6

COLONIAL SUGAR COMPANY

OPERATIONS IN FIJI AND NEW, ZEALAND. Sydney, March 26. At a, general meoting of the Colonial (sugar Company it was decided to reenter a separate companv in Fiji, with an approximate capital of £3,500,000, or which £3,250,000 will be 6 per cent, preference shares in tho existing company. The directorate and management o- the new company will control the Fiji and New Zealand business, and the existing company will represent tho Australian business. The dividend on existing shares will bo cut down to 6 per ccnt. until a sum enual to a year's dividcrnd on the preference shares is set aside and invested in tho outside business.

The chairman of the company stated that on March 31 lialf of tlio business outside the Commonwealth would represent 3} millions. It was proposed that the new company should have preference shares to that amount, the parent company subscribing £250,000 .in ordinary shares to provide working capital. The preference shares distributed to shareholders would be rateable, each receiving one £20 preference share for every share now held. The shares thus allotted in the new company to carry 6 per cent, cumulative preference dividend, which would take preference of any dividend on ordinary shares held by the Australian company. Hiis 6 per cent, preference dividend was not additional to the nresent income, but drawn therefrom. Tlie shareholders had no reason to supposo that proposed division of assets would bring more profit for distribution. It was not proposed to alter control; the same Board of Management would work the separated businesses. As the interests of the new company would be larger in Fiji than in New Zealand,, registration would he made in the former place, but provision would be made for the share registers to he at Sydney, Suva, and Auckland. Dividends would be obtainable at anv Australasian branch.. The allotment of shares will be made in May or June.