I&M Holdings has re-organised its shareholding structure to comply with stock market regulations that require companies that are listed on the Main Investment Market Segment (Mims) to have at least 1,000 shareholders.
The company announced Thursday that the High Court has sanctioned a plan to transfer shares held as a block by a major shareholder entity, Biashara Securities Limited, to individual shareholders.
Biashara Securities Limited, which holds a 13.92 per cent stake in I&M Holdings, has approximately 1,000 individual shareholders and its winding up will raise the number of I&M Holdings shareholders well above the required 1,000.
I&M Holdings had 700 shareholders at the time of listing earlier this year.
After a restructuring of the balance sheet for both I&M Bank and City Trust, the listed unit has 392,362,039 shares. On listing, the number of shares held by Biashara Securities stood at 54.62 million.
The Nairobi Securities Exchange (NSE) granted the firm a six-month exemption within which it must increase its shareholder base to the minimum 1,000 required for firms listed on the main investments segment at the bourse.
“In the process of the share transfer Biashara Securities is being wound up. The ratio of how the I&M shares will be issued to its shareholders will be in the same proportion of their holdings in Biashara,” said I&M marketing and product development general manager Suprio Sengupta.
Biashara Securities has already made an application to the Capita Markets Authority for approval of private transfer of its holding in IMHL to its shareholders.
“This transfer will increase the number of shareholders of I&M Holdings, but there will be no dilution in shareholding of other shareholders of I& M Holdings as a result of this transfer,” said the I&M Holdings board in a statement on Thursday.
Following the High Court approval of the share transfer arrangement, shareholders in Biashara Holdings are now required to have CDS accounts into which their I&M shares will be credited.
I&M Holdings will on Friday make available a circular approved by CMA to its shareholders giving further details on the proposed transaction.
Ziyungi Ltd is the largest shareholder in I&M Holdings with a 18.74 per cent stake.