Safaricom  shareholders approve change of name from ‘Ltd’ to PLC status

Shareholders of Safaricom(NSE: SCOM) approved a resolution on Friday to change the company name from Safaricom Limited to Safaricom Plc.

During the 9th Annual General Meeting, shareholders approved all five items on the company as recommended by the Directors.

Vodafone, a key shareholder of the company has decided to transfer a significant portion of its shareholding to Vodacom, its South African subsidiary.

“We see this as an opportunity for Safaricom to take services such as mobile money payments into other African countries,” said Nicholas Nganga, the chairman.

Robert Collymore, the Chief Executive Officer said they are yet to identify the countries they will be going into to invest.

“We have not settled on any country yet. We know there is a demand out there. We are confident we shall be meet it,” he told the media.

Vodafone’s direct shareholding in Safaricom now at 5 percent, while Vodacom with 35 percent.

Read: Vodafone Sells its 35 Percent Stake in Safaricom to Vodacom

The Chairman further disclosed to the shareholders that the board extended the contract of the CEO for an additional two years because, “he has successfully navigated our company through some of its most difficult years, whilst also venturing into new areas of business that will shape this company’s future.”

“The board has full confidence in him and pledges its support,” he added.

The shareholders unanimously re-elected Mrs. Susan Mudhune, Dr. Bitange Ndemo, Mrs, Esther Koimett, and Mr. John Otty to continue serving as members of the Board Audit Committee.

Read: Mohamed Shameel  and Linda Watiri Muruiki appointed as Safaricom’s Non-Executive Directors

Further, they approved a final dividend of Ksh 0.97 per share for the Financial Year ended 31 March 2017 as recommended by the Directors.

The dividend will be payable on or before 1 December 2017 to the shareholders on the Register of Members as at the close of business on 15 September 2017.

Sateesh Kamath, Chief Finance Officer of the company told the shareholders that, “The method the company prefers to reward its shareholders is through dividends and not bonus.” This was in response to the shareholders who had proposed the firm to consider issuing bonus shares in the ratio of 1:10.

Kamath emphasized that their would be an increase in the number of shares held but will not give better returns. He said some companies resolve to use bonus shares when they have lesser mechanisms of rewarding shareholders.