CRDB Bank’s foreign investors are
allowed to participate in the right issue so long as they observe
relevant laws and pay tax in line with of the law of the land.
The prospectus shows that a foreign
investor in the bank before applying for purchasing a new share under
the right issue should seek the advice of stock experts.
“Foreign investors are advised to
consult
their own professional advisors as to whether they require any
governmental or other approvals or need to observe any applicable legal
or regulatory requirements,” the prospectus says.
The report further says foreigners
wishing to apply for new shares must satisfy themselves as to the full
observance of the laws of the relevant jurisdiction and government and
other consents.
(This) “is to ensure that all requisite
formalities are adhered to, and pay any issue, transfer or other taxes
due in such jurisdiction,” the document issued yesterday says.
The bank right offer will kick-off
tomorrow (July 26) and designed to raise 150bn/- for expansion and
recapitalisation of the institution at a ratio of five old shares that
gets an offer of one share in the next three weeks.
The right offer, backed by underwriter,
goes at a price of 350/- or discount of 22 per cent for shareholders who
are at bank’s register of members at the closing of business on June
18.
The discount was calculated based on the
weighted average price of 90 trading days at 31st March 2015 which was
447/-. The share where trading at 430/- on Tuesday.
The rights issue is underwritten by
International Finance Corporation (IFC), Africa Capitalisation Fund Ltd
(AfCap) and CDC Group Plc (CDC), which are subject to the Maximum
Underwriting Commitment.
Each underwriter is responsible for a
specified proportion of the maximum underwriting
amount and are subject
to a number of conditions, including that the approval of the Tanzanian
Fair Competition Commission (FCC).
“This approval may take up to three months from the date of this information memorandum,” CRDB right issue prospectus says.
The right offer is geared to expand
networks to serve better new clients under government business they
recently won, plus to support growth in risk assets in the SME, retail
and corporate sectors and to invest in IT systems and processes for
efficiency improvement.
The underwriter will give 32/- per share
for those which failed to be bought by shareholders to maintain
collecting the full amount of 150bn/- after selling 435.5 million
shares.
