This archive report was first published on 30 June 2021.
On June 28th, 2021, TPS Eastern Africa, the owner of Serena Hotels, announced plans to issue 200 million new ordinary shares through a rights issue after its shareholders passed a special resolution during the company’s Annual General Meeting (AGM).
The resolution aims to increase the authorized share capital from KSh200 million to KSh400 million through the creation of an additional 200 million ordinary shares with a par value of KSh1.00 each. The new ordinary shares will rank pari passu in all respects with the existing ordinary shares of the company, according to the company.
As reported earlier, Serena Hotels posted a KSh1.2 billion net loss for the period that ended on December 31st, 2020, the biggest annual loss in the company’s history. Despite the challenging business environment, the hotel chain expects business to pick up in the third and fourth quarter of 2021.
TPS Eastern Africa is the third company listed on the Nairobi Securities Exchange to announce a rights issue in recent months, following Crown Paints and Transcentury Plc. The companies aim to raise funds to assist in the recovery process after the COVID-19 pandemic.
However, TPS Eastern Africa has yet to disclose additional information on the rights issue, including the date of issue and price of the rights issue.
