Madison Financial Services continues to ponder on asset disposal
Finance, Madison Financial Services Plc

Madison Financial Services has advised shareholders that it is still assessing which assets to dispose of in order to raise capital.

The announcement comes a follow up to an earlier statement that came after an emergency general meeting that resolved that the company would consider disposing of assets in order to bridge the financing gap. “Further to that cautionary announcement, shareholders will be aware that an Extraordinary General Meeting (“EGM”) of the Company was requestioned by a shareholder and was held via electronic teleconference on 04 May 2020 and 18th May 2020, at which the following special resolution was tabled: To consider the passing of a resolution to dispose of some of the Madison Financial Services PLC Group assets to raise capital to meet some of the group’s liabilities”.

Following the aforementioned meeting, Shareholders and the market are were informed that the EGM concluded on 18 May 2020 voted and passed the above special resolution. Fast forward to present day, “Shareholders were referred to the Further Cautionary Announcement issued on 19 May 2020 wherein the Board of Directors of Madison Financial Services PLC informed the shareholders and the market that the Board and Management of MFS had a general mandate to explore and identify specific assets that would be earmarked and considered for disposal by the Company in accordance with the LuSE Listing Requirements”, according to a statement issued by Company Secretary Kafula Mwiche on 22 July 2020 by order of the Board.

However, the hunt continues to identify which assets would be eligible for the sale. “The Board wishes to inform the shareholders and the market that the Company is still exploring and identifying assets that would be earmarked and considered for disposal”. No details have been extended as to why the identification of possible assets to sell has taken long. Once identified, the company will have to contend with the paradox of a COVID 19 afflicted environment, accelerating inflation, a weakened property market, and an exchange rate that experienced a volatile first half of 2020. These are all factors that will make the difference between MFS having a fire sale or getting their money’s worth following the sale.

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