Olympia capital is seeking to raise 600 million shillings in a rights issue later this year, after approval by shareholders. Part of the proceeds (Kshs. 87 million) will be used to repay a shareholders loan that was used to bridge the purchase of Plush Products in 2006.
The acquisition of Plush is expected to more than double the company's turnover in 2007 Olympia's accounts were not qualified, but the auditors have noted that their company has a negative working capital position - which has been offset by gains from the Botswana subsidiary - from which Olympia generates 5X more turnover than it does from Kenya.
More reading on Olympia: (here and here)
2 comments:
Banks - OCHL wants the approval to sell upto 30 Million shares but it is unlikely to do so immediately.
The Rights pricing will be announced ON or AFTER the AGM (June 15). Since the shares are trading at 18-20 it is likely that the Rights will be priced lower otherwise the take up may be low.
OCHL is a "holding" company that requires little cash for its operations but the main businesses are:
- KFT (PVC tiles manufacturer in Botswana)
- Plush (Blinds & accessories in S.Africa)
I see that they will close the gap on the issued & paid (50m) and authorised (200m) share capital.
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