KIGALI

Nation Media Group has cross-listed its shares at the Rwanda Stock Exchange.

The cross-listing, a landmark in the country nascent bourse took place on Tuesday after approvals by the market’s regulator Capital Markets Authority (CMAC) of Rwanda and the Rwanda Over The Counter (ROTC) Market.

CMAC granted the Kenyan based company, which holds operations in print and broadcast media in Tanzania and Uganda the permission to admit more than 157m ordinary shares of the company to the official list of the ROTC under the abbreviation “NMG”.NMG’s Chairman Wilfred Kiboro said that the company was introducing 157,118,572 ordinary shares to the official list of ROTCM. He added that the shares have a combined market capitalization of Kshs25.6 million ($325 million.)

The ordinary shares of the company have a nominal or par value of Shs.2.50 each and rank pari  passu with the right to participate in all future dividends to be declared and paid on the ordinary share capital of the company.

This means that MNG now becomes the second company to cross-list shares on the Rwandan market after Kenya Commercial Bank listed last year.

The shareholders of the company at the Annual General Meeting held on May 19, this year, passed a special resolution to offer the shares of the company to investors across East Africa through the cross listing of the Company‘s shares on the Uganda Securities Exchange, the Dar es Salaam Stock Exchange and the ROTC Market.

“We are most encouraged by the actions Rwanda is taking to promote growth of the capital market. The cross-listing of Kenya Commercial Bank shares last year and the prospects of several indigenous companies undertaking Initial Public Offerings here be a testimony to this process,” Kiboro said.

“The company has benefited from listing on the Nairobi Stock Exchange in many ways over the years. Of the many performing blue chip companies listed on the bourse, NMG shares are very well regarded and treasured because of our consistent performance since 1973 when the shares were first listed on the NSE,” he added.

The NMG shares recently cross-listed at the Uganda Securities Exchange and will also be cross-listed in Tanzania before the year’s end.

Kiboro also added that the cross-listing of the company’s shares on the ROTC Market is mainly to, enhance the profile of the company in Rwanda, enable Rwandan investors to share in NMG’s vision as shareholders of the company and also recognize the emergence of capital markets growth in  the country.

Mark Rugenera, the Chairman of Rwanda’s Capital Market Advisory Council (CMAC), the Rwanda bourse has recorded a total turnover of francs 18 million from 112,300 Kenya Commercial Bank shares traded on the ROTC markets.

“To attract both investors and issuers, the fiscal and non fiscal incentives were approved by government. The income tax and value added tax were amended to include the tax incentives recommended under the (East African) common market protocol,” Rugenera said.

“Some of these include, withholding tax on dividend on listed companies is now 5 percent from 15 percent, tax interest on listed bond with maturity of 3 years is now 5 percent from 15 percent and corporate income taxes were reduced to the lower rates ranging from 28 percent to 20 percent. All registered collective investments are exempted from taxes,” he added.

In Kenya NMG publishes the Daily Nation, The East African, Taifa Leo and the Business Daily newspapers that are all market leaders. The company also operates two radio stations. In Uganda the company’s subsidiary Monitor Publications publishes The Monitor, My Wedding Magazine and the Monitor Telephone Directory.

“We are in discussions to expand our presence in Rwanda in the very near future,” Kiboro said.