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Diamond Trust eyes more share capital in cash call

February 3, 2014

Nation Reporter -1

Diamond Trust Bank is looking to raise new capital this year with the sale of an additional 22 million shares through a rights issue. The company, in a statement on Monday, said it will hold an extra-ordinary general meeting next month during which shareholders are expected to approve the creation and sale of the new stake which, if fully subscribed, will raise the bank's authorised share capital to Sh1.2 billion. The meeting, scheduled for March 4 , will see owners approve the cash call, paving the way for directors to seek the necessary approvals from the regulators. Among other things, the meeting is expected to resolve that "the directors be and are hereby authorised to obtain all the required consents and authorisations, including any approval required from the Capital Market Authority (CMA) and to generally do and effect all acts and things required to give effect to the above resolutions," said Mr Stephen Kodumbe, the bank's company secretary in the statement. DTB, with operations in Kenya , Uganda , Tanzania and Burundi , last year made another rights issue which was oversubscribed by 86.2 per cent, raising Sh3.36 billion. Upon approval by shareholders and regulators, the bank will join National Bank , the Kenya Electricity Generating Company (KenGen) and Uchumi Supermarkets in the list of companies that have lined up rights issues this year.

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Source: Nation (Kenya)

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