Saturday, May 25, 2024

G4S awaits EGM for decision on highly recommended share split

G4S (Botswana) Limited said it hoped it will have more smaller investors acquiring its shares if the proposed share split gets approval at Extra Ordinary Meeting (EGM) next month.

The directors of the Botswana Stock Exchange (BSE)-quoted company have proposed a 10 for 1 split that will allow to make the share price cheaper and affordable to an array of Batswana.

G4S Managing Director, Moraki Mokgosana, said there are complaints that the company’s shares are expensive and the move will make the company attractive.

“We will be splitting our shares if we get approval at the EGM,” Mokgosana said at the company’s presentation of interim results for the period ended June 30, 2011.

Currently, G4S is trading at P39 making it expensive and only affordable by monied guys that include pension fund managers and insurance companies or rich individuals.

“It (share split) encourages a greater spread of shareholders,” he said, adding that this is exciting, especially as G4S is one of the many companies liked by fund managers as managers have invested pensioners’ money on the company.

The move follows a recommendation by Stockbrokers Botswana, a local brokerage firm that G4S should look at a possibility of a share split to boost liquidity.

The brokerage firm said in a research note: “Investors are currently facing market liquidity constraints with G4S. With only 8 million shares in issue, lack of transferability remains a concern”.

Stockbrokers, headed by Geoffrey Bakwena, added: “We believe a 10 for 1 share split would help promote transferability and liquidity, as well as facilitate the acquisition of the company’s shares by small investors.”

The company’s shareholders have also approved change of name from G4S Security Services (Botswana) Limited to G4S (Botswana) Limited.

Mokgosana said the change of name supports the transition from a supplier of commodity services to a global secure outsourcing company.

The EGM is billed for September, 19, 2011.


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