CFC Stanbic Holdings' key shareholders Stanbic Africa Holdings Limited (SAHL) has disclosed that it will take up its full entitlement in the upcoming Rights Issue. This has been revealed by the CFC Stanbic Holdings(CSH) board in a statement on the disclosure of the terms of the groups' Rights Issue. CFC Stanbic Holdings is the holding company for CFC Stanbic Bank and CFC Stanbic Financial Services Limited.

'The board is pleased to confirm that it has received a written commitment from Stanbic Africa Holdings Limited that it will take up its full entitlement in the Rights Issue,' reads part of the statement. This according to the statement represents 60% of the 121,637,427 new ordinary shares the company if offering in the Rights Issue.

Terms of the Rights Issue

During the company's Annual General Meeting (AGM) held in December last year, shareholders approved the board's proposal to raise funds for expansion partly through a renounceable Rights Issue to the existing shareholders of CFC Stanbic Holdings Limited.

The statement disclosed that CSH intends to raise KES 4,014,035,095 by way of a renounceable Rights Issue of 121,637,427 new ordinary shares at a price of KES 33 per an existing ordinary share. This will be the Rights Issue Offer Price which is a 22.9% discount to the average CHS ordinary share price on the Nairobi Securities Exchange (NSE) for the 30 day period up to and including 4th July, the date CHS board approved the Rights Issue terms.

CSH shareholders will have a right to subscribe for 4 new ordinary shares for every 9 ordinary shares they hold on the register by close of business on Thursday 30th August 2012. Current shareholders who have Central Depository System (CDS) accounts will have their account credited with the applicable Entitlement and will receive a Provisional Allotment Letter (PAL) notifying them of the same.

The company's shareholders who do not have CDS accounts will receive Allotment letters notifying them of their entitlement. These shareholders will only be able to participate in the trading of their new Rights upon opening a CDS account credited with the Entitlement. When allotted, the new shares will rank equally with the existing issued ordinary shares and will therefore qualify for dividends declared after completion of the Rights Issue.

Trading for the new shares is expected to begin trading at the NSE on Friday 9th November, 2012. CFC Stanbic Bank Limited and CFC Stanbic Financial Services Limited are jointly acting as Transaction Adviser for the Rights Issue .

CfC Stanbic Holdings received an approval from markets regulator CMA to carry out the Rights Issue which the company says will raise new capital to support its future expansion plans.