This
site is designed for Internet Explorer and Netscape Navigator versions
4 and above and a screen resolution of at least 800x600
|
|
|
Sucoma’s rights offer endorsed
By
Ayam Maeresa - 29-07-2002 |
|
|
Shareholders of the Sugar Corporation of Malawi (Sucoma) on Friday voted 100 percent in favour of the company’s proposal to raise K188 million by way of rights through the Malawi Stock Exchange (MSE).
Through the offer, which is the first of its kind by a listed company in the country, Sucoma will issue 39,635,800 additional ordinary shares to its existing shareholders in proportion to their shareholding.
Sucoma, largely owned by Illovo Sugar Group of South Africa, is seeking to raise a total of K188,270,050 to offset foreign and domestic liabilities estimated over K155 million (ZAR 20.4 million).
Illovo Group managing director Don MacLeod in an interview said the unanimous approval of the offer demonstrates shareholders’ confidence in the sugar stock.
“The 100 percent vote in favour of the motion is good news to us. It also demonstrates that shareholders are also committed to the business,” said MacLeod, “This will [in future] increase the dividend to the shareholders..”
MacLeod said the rights offer was one of the options to the company that has experienced high financing costs due to high interest rates. Through the rights offer, listed companies are able to raise capital at a cheaper cost.
He said being the underwriters to the shares, Sucoma will take up all the remaining shares in the event that shareholders have not taken up everything issued the under the rights offer.
Listed on the local bourse, the company currently has a total of 673,808,591 shares in issue with a current share value of K4.75.
“It is expected that the Rights Offer Shares will be listed on the MSE with effect from Thursday September 5, 2002,” said the company in its notice to shareholders.
The company, incorporated as a private firm in 1965, was converted to a public stock in 1997. The group comprises Sucoma and its wholly owned subsidiary Dwangwa.
MSE operations manager John Kamanga said in an interview in Blantyre last week as much as shareholders’ proportions will remain the same, Sucoma’s rights offer will increase the traded volumes. |
|
|
|
|
|
