Mumias board calls shareholders for an EGM in April

March 18, 2015
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The meeting will take place in Kisumu with the main agenda being the change of the company share capital structure which will be through a rights issue/FILE
The meeting will take place in Kisumu with the main agenda being the change of the company share capital structure which will be through a rights issue/FILE
NAIROBI, Kenya, Mar 18 – Mumias Sugar Company has now called for an Extraordinary General Meeting for its shareholders to be held on April 10.

The meeting will take place in Kisumu with the main agenda being the change of the company share capital structure which will be through a rights issue.

“Notice is hereby given to the shareholders of Mumias Sugar Company Limited that an Extraordinary General Meeting of the Company will be held at Tom Mboya Labour College Kisumu on Friday 10, April at 10am,” the statement by the company’s secretary read.

During the meeting shareholders will also be asked to approve the rights issue where the company is seeking to raise Sh4 billion.

The rights issue is part of recent government deal with the troubled sugar miller to raise a total of Sh5 billion for its full revival.

READ: Govt strikes deal to save Mumias Sugar

The deal which was announced by Deputy President William Ruto on March 6, will also see the board and management of the company overhauled.

The changes will also see some 300 workers laid off.

An audit firm KPMG will be appointed to oversee the company’s restructuring to pave the way for the rights issue.

In 2014, Mumias Sugar company’s loss widened to Sh2.08 billion from a loss of Sh407.4 million the previous year.

The firm’s output accounts for about a third of Kenya’s annual sugar output.

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