CIC Insurance Group intends to sell approximately 200 acres of land subject to receipt of all regulatory approvals. Company Secretary Gail Odongo says they will seek shareholders’ approval prior to the sale of land as required by law.
CIC postponed its Annual General Meeting (AGM) in line with government directive banning public gathering due to the Covid-19 pandemic. The company has said it will seek a ratification of the sale at the next AGM which will be called soon as the ban on public gatherings is lifted.
The parcel of land consitutites more than 25% of the total assets of the Company. The law requires listed companies selling more than 25 percent of their total assets to seek approval from investors.
The fifth Schedule of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002 (Regulations), paragraph G.06 states,
An issuer shall obtain approval of shareholders and make a disclosure in the annual report, for any:- substantial sale of assets involving 25% or more of the value of the total assets of the issuer; and shall make a public announcement of the fact.
Capital Markets Regulations