Sasini Share Split Allowed

The Capital Markets Authority has allowed Sasini Tea and Coffee to split its share into five. The plantations company says the move has been occasioned by the sharp rise in its share price.

At the Nairobi Stock Exchange the share has gained nearly Sh100 from Sh27.75 in June 2006 to Sh134 yesterday. The company's annual general meeting (AGM) to be held on February 23 at its Kamundu Estate in Kiambu is expected to endorse the split.

"We expect the split to encourage more and more Kenyans to own the company by way of investing in the stock," said Sasini managing director Peter Muthoka. "It will also stimulate investor buying and create more investment opportunities for Kenyans."

After the share split approval by the AGM, Mr Muthoka told reporters at his Nairobi office, the company would issue one bonus share for every five shares held before the split. This is in addition to the Sh1 a share dividend paid to shareholders in October 2006.

He said the bonus was the company's gesture to reward its shareholders following impressive financial results in the last financial year.

Previous year

Sasini pre-tax profit for the year ended September 30 rose to stand at Sh349.4 million from Sh524.8 million loss at the end of the previous year.

The gains by the company came from value addition initiatives it launched six months ago. It now earns 10 times price per unit more from selling packaged tea and coffee than the bulk selling it was doing before.