By: Steven Godfrey Mkweteza
Minority shareholders of listed companies( MISALICO), says it will not tire in pressing government to offload some of its shares in the Sunbird Tourism plc(Sunbird).
Secretary General for the grouping, Frank Harawa, told shareholders to the annual general meeting (AGM) of the sunbird tourism plc in Blantyre that government was shooting itself on the foot by holding shares in Sunbird Tourism.
Harawa added that government reluctance to offload some shares in the oldest hospitality company was creating liquidity challenges on the local shares market.
“We have raised this issue for several times now but it’s seems our government is not taking any action towards this. But we will not tire up to the time the government listens to us,” said Harawa.
Harawa said if the government continues holding shares in the company, then they will be a liquidity challenge as there will be no shares on the local market.
“Government should offload some shares on the market to the general public so as to narrow the huge demand gap. We will also make serious gains on the capital market if the issue is resolved and share prize will be increased,” said Harawa.
However, the chief executive officer (CEO) for sunbird tourism plc, Samson Mwale, said the issue needed lobbying and engagement between the shareholders.
“I cannot speak for the government but what I know is that government position on this has not changed for years now. There is a need for proper strategies so as to convince the government to dilute shares. This maybe, through shareholders engagement,” said Mwale.
On the 2022 financial performance for the company, Mwale presented that his company has registered a profit after tax of MK3.1 billion representing an increase of 307 percent from the 2021 profit of MK749 million.
He said the profitability was driven by improved revenue as a result of business rebound through intensified marketing and strong cos containment measures.
Mwale said the positive performance has also resulted the company to declare and pay interim dividend of MK132 million representing MK0.50 per share in respect of the year ended December 2022.
Sunbird Tourism plc is a publicly quoted enterprise, listed on the Malawi stock exchange in 2002.
Malawi government is a major shareholder of the company with 71 percent through dormant Malawi development corporation (MDC). 15percent of shares are owned by Press Corporation while 14 percent of the company are owned by members of the public.
