Further to the Results Announcement dated 09 April 2015 and in compliance with the Listing Rules of the Lusaka Stock Exchange (LuSE), shareholders are advised that the Board proposed the consolidation of the authorised and issued share capital of Zambia National Commercial Bank PLC (“Zanaco”) on the basis of one (1) new Zanaco ordinary share for every six (6) existing Zanaco ordinary shares held by shareholders on the shareholder register as at 30th April 2015 (“Record Date”). The current par value of each Zanaco ordinary share is ZMW 0.01. The par value of each consolidated share will become ZMW 0.06 as a result of the Consolidation.
In compliance with the LuSE Listing Requirements a circular giving details of the proposed consolidation of share capital was issued to shareholders. At the Annual General Meeting (“AGM”) held on the 30th of March 2015 shareholders approved the Share Consolidation.
Purpose of the Share Consolidation
The primary purpose of the Share Consolidation is to address the higher spread between the bid to buy price and the oer to sell price associated with share prices below ZMW 1.00, which can result in significant movements in the share price on small volumes traded and subsequent price instability.
Implications of the Share Consolidation
Zanaco has opted to amend its share capital via a 1 for 6 Share Consolidation (1 new share for every 6 shares held) as at Record Date. The impact of the Consolidation will be as follows:
- A decrease in the number of authorised shares from 10,000,000,000 shares of ZMW 0.01 par value each to 1,666,666,667 shares of ZMW 0.06 par value each;
- A decrease in the number of issued and fully paid up shares from 8,662,500,000 shares of ZMW 0.01 par value each to approximately 1,443,750,000 shares of ZMW 0.06 par value each;
- The market price as at Record Date will increase by a multiple of six (6);
- The Consolidation will not dilute a shareholder’s economic interest in the Company as the value of the Company will not change. The Consolidation will be a book entry capital reorganisation that increases the nominal/par and market value per share by a multiple of 6 whilst simultaneously decreasing the number of authorised and issued shares by the same multiple.
Salient Dates of the Share Consolidation
Monday, 27 April 2015 Last day to trade in Zanaco shares in order to be recorded as a shareholder at Record Date
Tuesday, 28 April 2015 Trading in Zanaco shares is temporarily suspended
Thursday, 30 April 2015 Record Date for participation in the Consolidation of Share Capital
Monday, 4 May 2015 Publication of Final Announcement in respect of Consolidation; Effective Consolidation date
Tuesday, 5 May 2015 Lift share trading suspension and resume trading in Zanaco Consolidated shares