And now for the statement:
Over the last two days, KenolKobil has received media queries about the split of KenolKobil Limited shares.
As a public listed company and a responsible player that strictly abides by best corporate governance principles, we would like to set the records straight, and in so doing ensure that the public, who are the owners of the company alongside other international investors, are not guided by speculation.
KenolKobil would like to state that it intends to execute a share split, subject to approval by the Capital Markets Authority (CMA) and the Nairobi Stock Exchange (NSE), as well as approval by shareholders during the Annual General Meeting in May.
The intended split will be the second share split by KenolKobil, with the first executed in May 2004 when each ordinary share was split by 10, changing the par-value of each ordinary share from KShs.5.00 to KShs.0.50. KenolKobil was the first ever company in Kenya to execute a share split.
The intended split of the KenolKobil Limited share, among other actions the Board resolved to take, is expected to create better liquidity by attracting more investors, especially common Kenyans- East Africans and other investors who have hitherto been locked out by the limited number of shares available and the share price in the market. The Board expects it to create more vibrant trading activity.
By increasing the number of shares, a broader market will be able to access to the stock. The move will also create more liquidity in employees’ investment, through the Employee Share Ownership Plan (ESOP), and thus create more motivation and sense of belonging among the staff for the continued growth of the organization.
The Management expects the years ahead, to show strong growth in company performance and profitability, with positive indication already for the first 4 months of the year 2010.
KenolKobil will keep shareholders and the media updated on this and or any new development.
Jacob I. Segman
Chairman & Group Managing Director
GOD BLESS YOUR LIFE