Mpico Limited is engaged in discussions to restructure its capital base in a move that will result in the listed property management firm reacting to changed business conditions.
A published cautionary statement yesterday signed by company secretary Cosmas Katulukira has informed current shareholders, potential shareholders and the investing public that negotiations are still ongoing.
“Shareholders and the general public are, therefore, advised to exercise caution when dealing in Mpico shares until a full announcement is made on the outcome of the negotiations,” reads the statement in part.
On the Malawi Stock Exchange (MSE), the counter with 1.1 billion shares on issue, traded at K9 per share on Tuesday.
Apart from owning a number of properties in the country, Mpico Limited also owns Mpico Gateway Mall in Lilongwe’s low density suburb of Area 47.
Market analysts said capital restructuring can make a company more appealing to prospective investors because this financial management tactic, among others, decreases expenses, improves operational efficiency, raises the earnings per share (EPS) of the business and provides a base for much better overall operational results.
In the year ended December 2014, Mpico Limited posted a K2.2 billion after tax profit and said it was dealing with huge rental arrears owed by a major tenant which negatively affected its liquidity and hampered the ability to perform in the year. n