Shareholders of Malawi Stock Exchange (MSE)-listed Blantyre Hotels Limited (BHL) on Thursday unanimously approved a rights offer of up to seven billion new ordinary shares to existing shareholders and new investors.
This follows an extraordinary general meeting (EGM) that the company held in Blantyre.
The company is issuing a rights offer to raise K62.4 billion to invest in its hotel project in Lilongwe.
BHL Board Chairperson Vizenge Kumwenda said the approval by the shareholders means that the process of raising that K62.4 billion could now proceed.
“This whole process and the capital raising should be completed before the end of this year,” Kumwenda said.
Financial Market Dealers Association of Malawi General Secretary James Mbingwa said the rights issue gives the right to shareholders to acquire more shares than what they initially had.
This, he said, raises expectations among the investing community on how many shares each shareholder is going to get.
“In the event that one chooses not to acquire the rights, it means that they are going to have less shares and that would mean that they are getting diluted as a shareholder.
“They are not going to have the same percentage of shareholding that they initially had, then they can be passed on to other investors in BHL. Shareholders or other investors could get a chance to acquire those shares,” Mbingwa said.
0 Comments