The Capital Markets Authority (CMA) has given the Standard Group PLC the go-ahead to raise Sh1.5 billion from shareholders through a rights issue. The company, the oldest and one of the leading media houses in the region, said the funds would be used to strengthen its balance sheet so that it could take advantage of emerging digital growth opportunities as part of an ongoing re-organisation. "The Authority has reviewed the documentation and information memorandum submitted in support of the application for the increase in the share capital of the company through issuance of additional rights to existing shareholders and is satisfied that adequate disclosures have been made as required under the 12th schedule to the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations 2023," said Wycliffe Shamiah, CMA chief executive, in a letter to the Standard Investment Bank, the lead transaction advisor in the rights issue. "Consequently, in exercise of the powers conferred to the Authority by the Capital Markets Act and Regulation 16 of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations 2023, the Authority hereby approves the rights issue and listing of additional shares in accordance with the submitted information memorandum." A rights issue is an offer to existing shareholders to buy additional shares and offers companies a chance to raise additional capital to finance their strategies without going for expensive options such as debt.
The shares offered are at a discount to the prevailing market price.
Standard Group shareholders approved the rights issue during their annual general meeting in September.
The company views the rights issue as a key element of its new long-term strategy.
