Daily Archives

2019-08-28

Seed Co shareholders to receive dividends via C-Trade

By | Uncategorized

Shareholders of Seed Co International Limited can now receive their dividend payments below US$10 through the C-Trade platform as a way to enhance ease of transacting and cut costs.

However, Seed Co International shareholders with dividends above US$10 have an option to have their dividends deposited in their C-Trade accounts or to provide local US$ FCA Nostro Investment account details or local RTGS account in order to receive their dividend. The initiative comes as efforts to address challenges related to payment of small dividend amounts below US$10.

“Seed Co International Limited shareholders are advised that due to operational challenges related to payment of dividends below USD10, Seed Co International Limited hereby gives shareholders an option to receive their dividends through the C-TRADE platform,” said Escrow Group, head sales and marketing Eliah Sarayi.

C-TRADE is a mobile and online platform for the trading of securities on Zimbabwe’s capital markets and allows access to full trading functionalities for the Financial Securities Exchange Limited (FINSEC) and the Zimbabwe Stock Exchange (ZSE).

Last year Zimbabwe launched the C-Trade, which effectively opened capital markets to all and enhance financial inclusion.Escrow Systems, a subsidiary of Escrow Group, provided the technology that enables mobile share trading. According to Escrow, C-Trade enables investors an opportunity to accumulate small dividends and participate on ZSE and Finsec anywhere at any time as well as access to shareholder portfolio information.

Mr Sarayi added receiving dividend payment via C-Trade enables investors to accumulate their funds on the platform which they can later convert to local currency for withdrawal. Investors also have an option to accumulate the funds on the platform and purchase more shares, for other counters as well. “Moving small amounts like US$10 and less is a challenge in itself. But if the funds are deposited into a C-Trade account, it is an advantage. You can let that money accumulate for later withdrawal. “This can also be an investment strategy within the C-Trade, you can purchase more shares, not only Seed Co shares in this case but it is an opportunity to diversify your portfolio,” said Mr Sarayi.

Shareholders are therefore required to have the C-Trade mobile application on their devices in order to open and activate accounts giving them access to their C–Trade portfolio, view foreign currency dividend, buy shares or convert the money to local currency for withdrawals. Last year, the seed manufacturer unbundled 71 percent of Seed-Co International, which was represented by 242 million ordinary shares. On completion of transaction, Seed Co Limited retained 26 percent stake in Seed Co International. Seed Co International then listed on the Botswana Stock Exchange (BSE).

Source:
Enacy Mapakame Business Reporter
https://www.herald.co.zw/seed-co-shareholders-to-receive-dividends-via-c-trade/

JSE agrees to acquire majority stake in share registry Link Market Services South Africa

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JSE Limited, the operator of the Johannesburg Stock Exchange (JSE), Africa’s largest, multi-asset class stock exchange, has agreed to acquire Link Market Services South Africa (Pty) Ltd (Link SA), the second largest share registry business in South Africa (with 6 of the top 40 listed companies as clients), subject to all required approvals, for a cash amount of R224,5m.

JSE Limited will acquire a 74.85% shareholding in Link SA with Link SA’s Black Economic Empowerment (BEE) shareholder retaining the remaining 25.15% and the Link SA CEO, Iqbal Haniff, remaining as CEO of the company.

The acquisition will see Link SA being merged into the JSE Limited structure and operated independently under a newly formed business stream, subject to all required approvals. This proposed acquisition comes after many engagements with the JSE’s listed companies’ which have expressed a desire to drive synergies and consolidate how they service their shareholders through a one-stop-shop.

The proposed transaction is revenue accretive with an expected contribution of up to 6% of Group revenue, while exceeding the Group’s return on investment hurdles. This demonstrates that even in tougher economic times there are opportunities where the JSE can make a difference to its clients by thinking creatively and working hard to deliver that difference. This also presents opportunities for both listed and unlisted companies to use these services.

Through Link SA, the JSE intends to introduce end-to-end products and services to JSE listed companies, making it easier for them to communicate and understand their shareholder base. These services include shareholder register maintenance, corporate actions, shareholder analytics, managing BEE share schemes, electronic communication and voting, and training and educating shareholders. The transaction will enable the JSE to diversify revenue and extend the services it already offers listed companies through its Company Services team, which includes training, investor relations support and listed company annual, and interim results presentations hosting and meeting support.

JSE CEO, Nicky Newton-King say’s “We are continuously having conversations with our clients on how we can better meet their needs and add value. The JSE is well placed to engage in order to fill a crucial gap in the market and to collaborate with our listed companies to educate and look after their shareholders end-to-end. We look forward to this transaction strengthening our relationships with our listed clients and helping to build a stronger and more engaged shareholder base for our issuers which is so important for real inclusive growth in our country.”

John McMurtrie, Link Group Managing Director, says “Link SA has established itself as a leading share registry in the South African market and we strongly believe the partnership with the JSE will add value to the business. Link SA will remain a key member of the Global Share Alliance and we look forward to continuing our relationship with the business and with the JSE in the future.”

Written by JSE

Published:
https://www.african-markets.com/en/stock-markets/jse/jse-agrees-to-acquire-majority-stake-in-share-registry-link-market-services-south-africa