- According to the company annual report for 2017, the adjustment will result into the company share price going downward to Sh132 from currently Sh600 as of yesterday.
Dar es Salaam. Tanzania’s biggest tea company, Tatepa, is considering adjusting its share price downward by nearly 80 per cent.
According to the company annual report for 2017, the adjustment will result into the company share price going downward to Sh132 from currently Sh600 as of yesterday.
This follows resolutions during the company annual general meeting held on December 20, last year. Tatepa will therefore be the first ever company listed at the Dar es Salaam Stock (DSE) to adjust its share price downwards since opened two decades ago. The company was listed in 1999 and became the second product after Tanzania Oxygen Limited (TOL Gases).
Its current market capitalisation stands at Sh11.19 billion.
The request for share price adjustment has already been sent to the Capital Markets and Securities Authority (CMSA) for approval.
“As requested by CMSA, the Extraordinary General Meeting of the company was held on December 20, last year and resolved to adjust the price of our shares. Now, we are waiting for approval of the suggested price from CMSA, which I believe will come soon,” according to the annual report. “DSE and CMSA were provided with the share evaluation report with the request to allow adjustment of the share price.” CMSA public relations manager Mr Charles Shirima once confirmed over the Tatepa request, although he fell short of giving more details.
Tatepa is a holding company, which owns majority equity stake of 70 per cent of Wakulima Tea Company Limited, 55 per cent of Rungwe Avacado Company and 94.03 per cent of Kyimbila Tea Packaging Company, both involved in production, processing and export of tea. The annual report shows that the group’s after tax loss increased to Sh2.1 billion from Sh1.08 billion recorded in 2016.
Following unimpressive performances, the board did not propose dividends for 2017.