Bralirwa offers investors bonus shares, dividend

Money Markets

A Bralirwa production plant in Rwanda. Photo/File  Nation Media Group

By John Gachiri

In Summary

• Shareholders in the books by May 23 will also be entitled to Rwf15 (Sh1.92) dividend in addition to the bonus shares.

Bralirwa shareholders will receive a generous bonus offer of one share for each held besides a dividend.

The Rwandan brewer listed on the Rwanda Stock Exchange and with many Kenyan shareholders said it would also ask shareholders to approve the recommendation by the board to increase the share capital by ten times at the annual general meeting which is expected to be held on May 29.

“The annual meeting of shareholders considers the recommendation of the directors to increase the share capital from Rwf514,285,000 (Sh66 million) to Rwf5,142,850,000 (Sh660 million),” says Bralirwa’s 2013 annual report.

Analysts said recapitalising is done if the management feels it would not be prudent to only award shareholders dividends alone.

“This is done if the firm realises that it is not possible to pay retained capital as dividends,” said Eric Musau, a research analyst at Standard Investment Bank.

Shareholders in the books by May 23 will also be entitled to Rwf15 (Sh1.92) dividend in addition to the bonus shares.

Heineken Group is the majority shareholder with a 75 per cent stake while the remaining 25 per cent is held by various small investors.

The dividend is however a 25 per cent drop from Rwf20 (Sh2.56) paid in 2012. The brewer said it is planning to expand this financial year.

“2014 will see further upgrading investment in anticipation of continued growth in Rwanda and the EAC, together with further people and organisational development and portfolio investment and innovation,” said Bralirwa in a statement.