Food company Seprod Limited plans to increase its authorised share capital by 28 per cent in a series of steps that will let the board transfer the new shares to persons or directors and list them on the market.
The move requires shareholder approval at the upcoming annual general meeting on September 27. Shareholders are to vote to consider increasing the authorised capital by 220 million new shares from 780 million to one billion units.
Seprod CEO Richard Pandohie said the details would be released at the meetings.
“Come to the AGM,” he said, when asked for comment. The vote is scheduled to take place at Terra Nova All-Suites Hotel in Kingston.
Authorised shares give the company the limit from which it can issue shares on the market. Seprod has some 733.5 million issued shares from its current 780 million authorised units.
The manufacturing and distribution company, which produces brands such as Eve, Delite and Gold Seal, said in a market filing that its board would decide the next steps in relation to issuing the new shares after their creation.
Seprod’s market capitalisation stands at $51 billion. At $69.49 per share, the stock is down two per cent year to date but is doing better than the overall market, which is down 10 per cent.
Seprod previously indicated that it plans to list its foreign subsidiary AS Bryden Holdings on the Jamaica Stock Exchange and Trinidad & Tobago Stock Exchange, before year end. It is unknown whether the increase in authorised capital by Seprod is related to the plans to list Bryden.
Seprod acquired 60 per cent of the Trinidad-based trading company in mid-2022.
Source: Financial Gleaner
September 15, 2023