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THE STANDARD
BUSINESS
Crown Paints Group Vice-Chairman Hussein Ramji attend the virtual 63rd annual general meeting.
Crown Paints Plc will use the Sh711.80 million being raised via the rights issue to salvage its subsidiaries in Uganda, Rwanda and Tanzania, which the paint and coating firm revealed are struggling with debt.
Just a year after the company wrote off Sh653 million it had invested in its subsidiaries in Uganda and Tanzania, the Nairobi Security Exchange (NSE) listed firm has now turned to its shareholders for more capital.
The company did write off Sh374 million for Crown Paints Tanzania and Sh278 million for Regal Paints, its Uganda subsidiary. The rights issue will see shareholders of the company allowed to purchase additional shares.