TPS Eastern Africa, the owner of Serena Hotels plans to issue 200 million new ordinary shares through a rights issue after its shareholders passed a special resolution during the company’s Annual General Meeting (AGM) on Monday 28th June.
According to the minutes of the company’s 49th AGM, investors passed the resolution to increase the authorized share capital from the current KSh200 million to KSh400 million through the creation of an additional 200 million ordinary shares with a par value of KSh1.00 each. The new ordinary shares will “rank pari passu in all respects with the existing ordinary shares of the company,” said the company.
Serena Hotels, the leading hotel chain in East Africa, posted a KSh1.2 billion net loss for the period that ended on 31st December 2020, the biggest annual loss in the company’s history. The hotel chain said that although the business environment remains highly unpredictable, it expects business to pick up in the third and fourth quarter of 2021.
TPS Eastern Africa is the third company listed on the Nairobi Securities Exchange to announce a rights issue in recent months after Crown Paints, and Transcentury Plc. The companies aim to raise funds to assist in the recovery process after a challenging period linked to the covid19 pandemic.
TPS Eastern Africa is yet to disclose additional information on the rights issue such as the date of issue and price of the rights issue.
Also read: Serena Hotels Posts its Biggest Loss Ever After Tough Year