NAIROBI, Kenya, Dec 19 – Shareholders of CfC Stanbic Holdings Limited on Monday approved a Rights Issue at an Extraordinary General Meeting held in Nairobi.
Shareholders also voted to raise the firm’s authorized share capital from Sh1, 368,421,055 to Sh2,368,421,055.
The authorized share capital of Sh2,368,421,055 is divided into 473,684,211 ordinary shares of Sh5 each, by the creation of 200,000,000 new ordinary shares of Sh5 each.
Effectively, the move paves way for the Board to make formal applications to the Capital Markets Authority and the Nairobi Securities Exchange for the Rights Issue which is targeted for the second quarter of 2012.
Confirming shareholders nod to the transaction CfC Stanbic Holdings Chairman Fred Ojiambo said: “We are very pleased that our shareholders have approved the Rights Issue which can now proceed in accordance with the Capital Markets Authority and the Nairobi Securities Exchange regulations. We regard this resolution as a demonstration of confidence by our shareholders in the strategic course that we set for the Group.”
The Managing Director of CfC Stanbic Holdings Kitili Mbathi said the Rights Issue would strengthen the Group’s capital position, and support the continued growth of the business in the future.
“In the past few years we have laid a strong foundation for the Group’s future and as the impressive results as at 30th September demonstrate, we have been successful in implementing our strategy. We believe that there are great opportunities for growth and it is critical that we have sufficient capital to take advantage of these opportunities” Mr. Mbathi added.
At the Extraordinary General Meeting, shareholders also approved the amendment of the Articles of Association to reflect the new capital structure.
CfC Stanbic Bank is Kenya’s fifth largest commercial bank as measured by total assets and is a member of the Standard Bank Group.
The Standard Bank Group, is Africa’s largest bank by market capitalization and assets, and operates in 38 countries across the world.
CfC Stanbic Bank, which is listed at the Nairobi Securities Exchange, has a countrywide presence of 22 branches in Kenya’s major towns and offers a suite of financial services that spans personal and business banking, as well as corporate and investment banking.