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KFHL chairperson Ms Sibusisiwe Bango told an EGM last Friday that in addition to the relisting on the local bourse, the financial group would also list on the Johannesburg Securities Exchange and the Stock Exchange of Mauritius (SEM) to access deeper equity and bond markets.
“We delayed relisting because we wanted to preserve shareholder value”, she told shareholders adding that recapitalisation will strengthen the balance sheet of the group ahead of listing.
The EGM approved all the resolutions tabled including recapitalisation, share buyback, listing and the acquisition of controlling stakes in Kingdom Bank Africa Limited based in Botswana and Amara Tech, which is an approved processor of MasterCard transactions.
On the SEM, the group will list through a reverse takeover of a private equity firm. The private equity firm has strong investments in Mauritius and South Africa. If the deal sails through, KFHL shareholders will own 80 percent of the issued capital of the private equity firm.
Mauritius is striving to diversify its four-pillar economy – sugar, textiles, tourism and financial services – to make it more resilient to shocks.
KFHL will also raise US$25 million to capitalise its operating units through a combination of various funding mechanisms. The US$25 million capital will comprise US$15 million debt and US$10 million equity.
The equity portion will be raised through a combination of a rights offer of US$4,5 million, private placement of US$7,5 million and US$3 million by way of a public offering during listing. Debt capital of US$10 million will be raised through redeemable convertible preference shares.
Online Reporter