Kenya’s Capital Markets Authority and the Nairobi Securities Exchange have approved Nation Media Group’s issuance of 18.85 Million bonus shares following after shareholder approval earlier at the company’s AGM held in June 2020.
The media company will issue bonus issue in the ratio of one new share for every ten shares held at the close of business on 12th June 2020.
This will create an additional 18,854,229 shares priced at Sh 2.50 per piece amounting to the sum of Sh 47.14 Million.
“Such shares shall be distributed as fully paid up among the persons who are registered as holders of the ordinary shares in the capital of the company at the close of business on 12th June 2020…” the firm noted in a statement to investors.
The publisher of the Daily Nation newspaper announced in April that there would be no dividend and instead offered investors a bonus share issue of one for every 10 held. The bonus shares will begin trading on the Nairobi Securities Exchange on 15th December 2020.
Nation Media Group Half Year Financials
A drastic drop in advertising and circulation volumes pushed down the company into a loss territory of KSh 375.2 Million at the close of the six months ended 30th June, 2020. This is against a net profit of KSh 403.7 Million over a similar period last year.
Nation Media Group recently issued a profit warning citing dwindling advertising revenues due to the COVID19 pandemic as the reason behind the expected drop in profit.
Coronavirus has led companies to cut their marketing and advertising expenditure as they face financial challenges. Moreover, newspaper sales have declined as more people work from home as audiences shifted from print to digital media.
Share Price
On Tuesday, Nation Media Group closed at 15.50, 72% above its all-time low of 9.00 set on Aug 11, 2020. Over the last 52 weeks, the company’s shares have declined by 56%.
ALSO READ; Nation Media FY 2019 Earnings decline 18.5% to KSh 856 Million
