Thursday, October 1, 2020

Sefalana Holdings approves share split

Sefalana Holdings, the milling and wholesale company is on the verge of a share split given the thanks of overall shareholders Tuesday as it aims for possible acquisitions announced at its financial results.

The company is about to announce 13.4 million shares un-issued shares which will be subject to the new companies Act still to be enforce.

In its new look initiative, Sefalana Holdings, which is planning secretive acquisitions, said the shares indicated above will possible trade exchange in the event of a more complex and expensive deal.
The move re-inforces the earlier commitments that its new look strategy is aimed at consolidating the company’s operations.

The move comes at a time when its share price has been enjoying a dramatic good rally between July and September this year when it rose 62 percent to stabilize at 2250 thebe but it closed unchanged on Friday at 2100 thebe .

The movements were sparked by the financial results published on July 30 this year, as its turnover rose to P 70.6 million and net profit of P 33.7 million against P 9.1 million in the previous year.

The results, which were strengthened by bold announcement of massive acquisitions including the upping of its shareholding from 40 percent in one of its troubled subsidiaries, Metsef were largely in line with the market expectations. But on Tuesday Lawrence Lekalake, the board chairman was generally quite on those possible possibilities.
“The directors are confident that the group can sustain the current profitability but the growth is only likely to come from new acquisitions and expansions. Plans are in hand to expand property portfolio, investigations are being made into the return into the milling industry and the controlling stake in Metsef is under debate,” the company said at the time of publishing the results.

The acquisition of its loss-making Metsef is most likely to the bickering between its shareholders, namely Sefalana Holdings and Frasmet of South Africa. The two parties have been engaged in a long running boardroom battle which ultimately reached the High Court as they quarrel over the management agreement. The case is due again in December this year where it is expected to be finalised.

The company’s good results were driven by its darling Foods Botswana and better operational cost containment which made last year’s results against this year’s to look like chalk and cheese.

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