The Belize-based institutional investor currently holds a 62 percent stake in the Nairobi Securities Exchange-listed firm and plans to spend more than its minimum allocation of Sh441.3 million in the capital call.
The Capital Markets Authority (CMA) has approved the fundraising plan, noting that the paints manufacturer’s big shareholders are ready to acquire more shares from minority investors who will snub the offer.
Crown Paints’ majority shareholder Barclay Holdings will raise its stake in the company if minority shareholders do not provide their proportionate capital in the impending Sh711.8 million rights issue.
The Belize-based institutional investor currently holds a 62 percent stake in the Nairobi Securities Exchange-listed firm and plans to spend more than its minimum allocation of Sh441.3 million in the capital call.
The Capital Markets Authority (CMA) has approved the fundraising plan, noting that the paints manufacturer’s big shareholders are ready to acquire more shares from minority investors who will snub the offer.
This has seen them get an exemption from takeover regulations, meaning that they will raise their stakes without making an offer to buy out the minority investors.
“They are also willing to take more than their initial entitlements subject to availability during the rights issue,” CMA said in a statement.
The company plans to sell a total of 71.1 million shares to existing shareholders, pricing the offer at Sh10 per share.
This represents a 72.2 percent discount to its last traded share price of Sh36.
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