ZIMBABWE Financial Holdings Ltd (Finhold) is today holding its extraordinary general meeting in Harare to seek shareholder approval for a Renounceable Rights Offer.
In terms of the Rights Offer the diversified financial services group is offering 47 775 102 shares to existing holders for subscribing in cash at the subscription price of $350 each, payable in full on acceptance.
The company said the Rights Offer would be on the basis of one new share for every two ordinary shares held at the record date.
The shares will be listed on the Zimbabwe Stock Exchange on December 23.
The company said those who could not attend today’s EGM but who wished to be represented thereat should complete and sign a proxy form to be presented at the meeting.
“In order to participate in the Rights Offer persons who have acquired Finhold shares which have not been registered in their names should ensure that such registration is effected on or before close of business on the record date being 1600 hours on Friday, November 28 (today)” Finhold told shareholders.
Finhold Annual General Meetings and EGMs have sometimes been heated with shareholders regularly questioning the company’s mediocre performance.
Camps have developed within top management and even on the board resulting in contradictory policies sometimes being applied undermining performance at the financial services group.
Finhold shares were yesterday trading at $800.
The current Finhold chief executive officer is Elisha Mushayakarara a former Ministry of Finance and Economic Development permanent secretary.
While Finhold is listed on the ZSE it is government-controlled.
The institution has been given lucrative business deals such as the Petrofin Bills, which were meant to raise money for fuel imports.
Today’s EGM will be asked to approve a special resolution authorising that the company’s share capital be increased from $100 million divided into 100 million ordinary shares of the nominal value of $1 each to $200 million divided into 200 million ordinary shares of the nominal value of $1 each by the creation of a further 100 million ordinary shares of the nominal value of $1 each. Finhold said such shares would rank pari passu in all respects with existing shares. The institution said it would also ask shareholders to amend the company’s articles of association at the EGM.