NMG to cross-list in Uganda on October 19
Posted Thursday, October 7 2010 at 00:00
Nation Media Group has set October 19 as the date for cross-listing shares on the Uganda Stock Exchange. This was announced by Dr Gitahi Githinji, the managing director of Monitor Publications, a subsidiary of the group during a meeting in Kampala on Tuesday.
NMG is currently listed on the Nairobi Stock Exchange (NSE) in Kenya. The cross-listing of its shares in Uganda will present an opportunity for many Ugandan investors to own a piece of East Africa’s leading media house.
The group owns seven newspapers, four radio stations, and two free to air television stations in the East African region. Besides Monitor Publications Limited, in Uganda, NMG also owns Nation Television (NTV), Nation Courier, and KFM radio.
Dr Githinji said the cross-listing will enhance the company’s profile in Uganda and enable the firm’s clients to buy shares and be part of NMG’s vision as shareholders of the company. By Tuesday, NMG’s share price was trading at Shs4, 760 (KShs170) per share.
On the day of cross-listing in Uganda, the shares will open at the last traded price in Nairobi according to Mr Grace Semakula, a stock broker and analyst at African Alliance, an investment bank. “In case the share does not post any activity on the local bourse, the applicable Uganda/Kenya exchange rate will be applied to the last traded price at NSE,” he explained.
Trading of NMG shares will be done in Uganda shillings to eliminate any foreign exchange related risks. NMG will become the sixth company to cross-list on the USE from the NSE but the 13th company to be quoted on the Kampala bourse. Other cross-listed companies include; Kenya Airways, East African Breweries, Kenya Commercial Bank, Equity Bank and Jubilee Holdings. NMG is the second media house to be listed on the exchange after the New Vision Printing and Publishing Company Limited.
NMG, which has been listed on the NSE since 1973 also plans to cross-list its shares on Rwanda’s Over the Counter Market in Kigali, on November 2. The firm will also be cross-listed on the Dar es Salaam Stock Exchange in Tanzania at a later date.
The cross-listings are in line with the resolution passed by the Group’s shareholders to offer the company’s shares to investors across East Africa through cross-listing. The transactions are expected to enhance the company’s presence in the region, diversify ownership across the region and boost its profitability.
Other brands owned by NMG include; the Daily Nation, The East African, Business Daily, Taifa Leo, NTV, e-Africa, Easy Fm and QFM in Kenya. It also operates the Citizen and Mwananchi Newspapers in Tanzania under Mwananchi Publications Limited.