G4S (Botswana) Limited, the listed security outfit, will go for a share split after the Ordinary Meeting (EGM) held last week gave the proposal the go ahead.
The management of the company had recommended the share split in a bid to attract more individual shareholders.
The shareholders holding 7,104,681 shares or 88.81 percent approved the proposal at the EGM that was held at Gaborone Sun on September 19.
It means now that each issued ordinary share in the stated capital of the company will be sub divided by a factor of ten shares for each share in issue.
The directors of the Botswana Stock Exchange (BSE)-quoted company recently proposed a 10 for 1 split that will make the share price cheaper and affordable to an array of Batswana.
G4S Managing Director, Moraki Mokgosana, earlier in the month 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.
The directors will now apply to the stock exchange for the listing of all ordinary shares following the share split.
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.”
