Tuesday, 22 July 2008

Press Corp rights issues

The Press Corp rights issue to raise approximately MK2 billion is now well underway. The capital raising is due to the large number of major investments made during the past six years leaving a dent in the liquid capital. These investments include the acquisition of 80% of Malawi Telecommunications Limited (MTL) through Telecom Holdings Limited, a consortium in which Press Corporation has a 62.63% stake, increased stake in TNM Limited, establishment of the second Ethanol production plant, and the fish farming project.

The investments were financed to a large extent from internal sources supplemented by external borrowings.

We do not expect the company to provide cash flow returns to the Holding company for some time. Further capital expenditure is also required to complete the infrastructure in the Maldeco Aquaculture fish farming venture. These entities together with the second Ethanol distilling complex, which has now
turned-around, make taking up the issue attractive. Noteworthy are the company's extensive holdings in Malawi.....

44% Bottling & Brewing Group Limited
55% BP Malawi Limited
66% Ethanol Company Limited
100% Hardware and General Dealers Limited
42% Limbe Leaf Tobacco Company Limited
50% MacSteel Malawi Limited
50.1% Malawi Telecommunications Limited
100% Maldeco Aquaculture Limited
51.8% National Bank of Malawi Limited
50% People’s Trading Centre Limited
50.1% PressCane Limited
100% Press Management Services Limited
62.6% Telecom Holdings Limited
100% The Foods Company Limited
37.6% TNM Limited

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