Insurance group Old Mutual Holdings will prioritise the payment of up to Sh1.8 billion dividend per annum to its Cape Town-based parent firm as part of a plan to settle Sh8.8 billion of debt owed to the multinational.
The insurer now plans to issue 1.75 billion preference shares of Sh5 each to the parent company, with the decision coming after multiple restructuring of the credit facilities over the years including postponement of the repayment of the principal amounts.
