FREEZING COMPANY SCHEMES

Taranaki Daily News, 8 August 1919, Page 7

FREEZING COMPANY SCHEMES

CAPITAL OF ONE MILLION. , ' Christchurch, August 5. A sensation was causod in financial circles in the city to-day by the announcement that the New Zealand Refrigerating Company, Ltd., proposed to increase its nominal capital from £300,,000 to £1,000,000 to a large extent, by transferring £300,000 from the reserve fund upon terms which make this sum a direct gift to shareholders. It is no secret that the operations of this company, largely through the sale of tallow, have been particularly successful this season, and in consequence its shares have been steadily rising. , The directors submitted the following scheme to shareholders They recommend that the nominal capital of the company be increased from £300,0n0 to £1,000,00 by the creation' of 700,000 new shares of £1 each. It is proposed to issue 000,000 <)f these new shar.es at par to such shareholders as are on the register on August 27, 1919. Each shareholder will bo entitled to take up these new shares in the proportion of two shares to each share of his holding Further, it is proposed to make a call of 10s each on the 600,000 new shares by a distribution of £300,000 as an appropriation from the reserve fund, which would be applied in payment of the call. As to the uncalled 10s on the new shares this will not be called up until the expiry of at least twelve months from the date of allotment. Should it be necessary or desirable %t any time thereafter that a call should be made then not more thas 2s (Id per share can be called at a time, and the interval between calls shall be not less than three months. Holders of the new, shares, Jf tho scheme is adopted by shareholders, will participate in the final dividend to be declared for the year ending October 31, 1919. If these proposals are •riven effect to the nominal capital will be £1,000,000. Of this there will be subscribed 900,000 shares nf £1 each which, Jess the amount uncalled, £300.000, will bring the total shares paid up to £600,000.