- AGM also considers Rights Issue to raise Capital
The only listed reinsurance company on the Lusaka Securities and Exchange has announced that it will pay investors in the company 7 ngwee per share, according to a published statement from the company.
The announcement came after the recently held AGM which was held via the online platform ZOOM due to the Covid 19 pandemic.
“At the Annual General Meeting held on 30th April 2020 via Zoom, a Final Dividend of K0.07 per share for the period ended 31st December 2019 was approved by the shareholders of Prima Reinsurance Plc (“Prima Re” or “the Company”)”, read a statement issued by Choice Corporate Services Limited on behalf of the company’s Board of Directors published on 18th of May 2020.
According to the statement, investors will expect to get payment of their dividend in June 2020. “In accordance with the requirements of the Securities Act No 41 of 2016 and the Listing Rules of the Lusaka Securities Exchange ( “LuSE”) , notice is hereby given that the dividend shall be payable to shareholders registered in the Company’s books at the close of business on Friday 5 th June 2020, the dividend Record Date”.
The statement also provided investors with details of the actual period of the payment of the dividend. “Accordingly, since share trading on the LuSE operates on a 3-day rolling settlement period, the last date to trade (the ex-dividend date) to qualify for the announced dividend is Tuesday 3rd June 2020. Dividend payments will be posted on Monday, 8 th June 2020”.
Another matter that was addressed during the online AGM was capital raising. The board was also seeking a special resolution to unconditionally authorize the registration of 45 million additional authorized ordinary shares of K1 each with the Securities and Exchange Commission (SEC) pursuant to the provisions of the Securities Act No. 41 of 2016.
Once registered, the company would “raise capital in the sum of K 40,500,000.00 (forty million five hundred thousand Kwacha) through a 1 for 2 Rights Offer by the issuance of 15,000,000 (fifteen million) ordinary shares of K1.00 each at an Offer price of K2.70 (two Kwacha Seventy Ngwee) per share to Shareholders on Record Date (“the Rights Offer”);
