Financial Trouble

Oil Producers in Financial Trouble

THE troubles of the vegetable oil producers are indicated by the following article, published by the Fiji Coconut Planters’ Union: The United Africa Co. was formed a couple of years ago by the amalgama tion of the interests of the Margarine Union, the Niger Co. (a subsidiary of Levers) and the independent African and Eastern Corporation. The capital of the amalgamation was in excess of £15,500,000. Of the shareholding roughly 40 per cent, was held by Uni lever. The interests of the concern are in West Africa, from which are drawn large supplies of palm oil, palm

kernels and other commodities used in the crushing industry.

The accounts of the United Africa Co. show a loss of £1,500,000 for last year. The concern is in financial diffi culties owing to its credit being re stricted. It has thus become necessary to introduce further capital.

The proposals are that capital shall be written down by £7,500,000, and an other £3,500,000 capital shall then be introduced. If the African and Eastern Corporation cannot contribute their entire quota, Unilever have offered to find £3,000,000 if the Africa and East ern Corporation will put up the other half-million; but the consideration is that Unilever will then hold approxi mately 80 per cent, of the issued share capital, and African and Eastern Cor poration will be reduced to 20 per cent.