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NMG to cross-list in Tanzania

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Geza Ulole, Feb 17, 2011.

  1. G

    Geza Ulole JF-Expert Member

    #1
    Feb 17, 2011
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    NMG to cross-list in Tanzania

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    Nation Media Group (NMG) managers receive the leadership and management award at the 2010 Company of the Year Award gala on December 1, 2010. NMG has been listed on the Nairobi Stock Exchange since 1973 and has a track record of profitability and growth. Photo/FREDRICK ONYANGO
    By NATION REPORTERPosted Thursday, February 17 2011 at 18:43

    Nation Media Group will on Monday cross-list its shares on the Dar es Salaam Stock Exchange, giving the leading media house a presence on the four stock markets in East Africa.
    The listing was approved earlier this month by the Capital Markets and Securities Authority and the Dar es Salaam Stock Exchange (DSE), the company said in a statement on Thursday.
    NMG shareholders gave the nod for cross-listing on the East African stock exchanges at the annual general meeting held on May 19 last year, by passing a special resolution to offer the company's shares to investors trading on the Uganda Securities Exchange (USE), the Dar es Salaam Stock Exchange (DSE) and the Rwanda Over The Counter (ROTC) Market.
    Some 157,118,572 ordinary shares issued by NMG will be cross-listed on the DSE.
    This follows listing on the USE and the ROTC Market in October and November last year.
    Trading in the shares at the DSE is expected to start immediately after the listing.
    The ordinary shares of the company have a nominal or par value of Sh2.50 each, and rank pari-passu with the right to participate in all future dividends.
    NMG has been listed on the Nairobi Stock Exchange since 1973 and has a track record of profitability and growth.
    The opening price will be determined by the prevailing closing price at the Nairobi Stock Exchange and the applicable exchange rates between the Kenya and Tanzania shillings.
    The company said the cross-listing on the DSE will enhance NMG's profile in Tanzania, enable Tanzanian investors to share in NMG's vision as shareholders and recognise the emergence of capital markets growth in Tanzania as evidenced by the number of cross-listings and other growth parameters at the DSE.
    NMG trades in Tanzania through its subsidiary company Mwananchi Communications Limited, which publishes three newspapers: two Kiswahili publications – Mwananchi & Mwanaspoti and The Citizen, the leading English daily in Tanzania.
    The Company also has bureau offices in Dar es Salaam and Arusha for The EastAfrican, the region's authoritative weekly publication.
    Daily Nation:*- Business News*|NMG to cross-list in Tanzania
     
  2. n

    nomasana JF-Expert Member

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    Feb 18, 2011
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    this is good. more cross border listing will lead to a market that is closely tied together which is a good thing but it can also be a bad thing(read the EU)
     
  3. G

    Geza Ulole JF-Expert Member

    #3
    Feb 18, 2011
    Joined: Oct 31, 2009
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    I know ila i think the risk in African markets is lower compared to the West. Take an example the recession that happened didn't affect Africa that much! NMG simply needs to raise money for expansion and its easier to do so through stock exchange than through banks! since no much stringent committments for the case of stocks exchange compared to taking loans!
     
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