Marshalls East Africa is set to delist from the Nairobi Securities Exchange (NSE) following years of recording losses.
The Global Limited, the firm’s top shareholder with a stake of 13.9 percent has offered to buy out fellow minority shareholders at a 25.0 percent premium at 10.8 shillings to the six-month volume weighted average price of 8.6 shillings as at 30th March.
The buyout will open on 10th May and close on June 7 but is subject to shareholders’ approval at the company’s annual general meeting scheduled for 8th May.
The plan to remove the company from trading on NSE will give Marshalls greater flexibility in changing its business strategy without prejudicing shareholders and will also reduce expenses related to maintaining a listing on the NSE, such as additional listing fees as a result of listing additional shares and annual listing fees.
Following the release of FY’2016 earnings, a number of companies reported depressed earnings with the total number of companies that issued profit warnings in 2016 coming in at 11 compared to 14 companies as witnessed in 2015 indicating a continually challenging operating environment.
As a result of this, cost rationalization measures, such as laying off of staff and closure of branches by banks continue to gather pace, with KCB Group being the latest to report laying off of 223 employees in 2016.
The Group spent 186.0 million shillings in the staff restructuring process that brought its total employee number to 7,192 from 7,415 in 2015. This came after KCB Group had indicated that it would lay off staff to cut expenses in a bid to improve efficiency, pointing towards lower staff costs going forward.
Most commercial banks in Kenya have been laying off staff as they continuously move their services to mobile and other digital platforms. The laying off staff also came as a result of the implementation of the interest capping law that greatly reduced earnings for most banks.