Old Mutual Holding will seek shareholder approval for a balance sheet restructuring proposal aimed at strengthening the Group’s future ability to distribute dividends and create long-term shareholder value.
The proposal, which will be considered at the Group’s 18th Annual General Meeting scheduled for June 30, involves the reduction of the Group’s share premium account and the application of the amount towards accumulated losses currently reflected on the balance sheet.
The proposed restructuring is aimed at strengthening the Group’s balance sheet, enhancing financial flexibility, and improving its future dividend-paying capacity.
The proposal does not involve any cash payment to shareholders, will not affect shareholders’ ownership interests, and has no impact on the Group’s operations, liquidity position, cash flows, or underlying business performance.
Old Mutual Group CEO Arthur Oginga said that this is an important step in strengthening the firm’s financial position and restoring greater flexibility for future shareholder returns as the business continues to grow and deliver sustainable performance.
“The proposal supports our ongoing efforts to optimize the balance sheet, enhance financial flexibility, and position the business for sustainable long-term growth and value creation for our shareholders,” Oginga said.
The proposed transaction comes against a backdrop of improving financial performance across Old Mutual Holdings PLC’s operations in Kenya, Uganda, and Rwanda.
The Group has reported profits for the past two consecutive years, including a Profit After Tax of Sh856 million for the year ended December 31, 2025.
Although the Group has returned to profitability, accumulated losses from previous periods remain on the balance sheet.
By the end of the last financial year, these accumulated retained losses stood at Sh7.06 billion.
The proposed restructuring would allow Sh4.66 billion currently held in the share premium account to be applied against these historical losses, thereby improving the Group’s future ability to distribute dividends when appropriate.
The board believes the proposal is in the best interests of the Company and its shareholders as it supports ongoing efforts to strengthen the balance sheet and position the business for sustainable long-term growth.
It has been unanimously recommended that shareholders support the proposal at the forthcoming Annual General Meeting.
Subject to shareholder approval, the transaction will also require confirmation by the High Court of Kenya before it becomes effective.
