The Capital Markets Authority (CMA) has given approval for investors who applied for shares in a botched capital raising offer by Muramati Sacco, now re-named Unaitas Sacco, to be admitted as members of the co-operative.
The approval will offer the investors a window to either accept admission as members of the savings and credit co-operative (Sacco) or a chance to reject participation in the share offer and get a refund of their cash.
Muramati had in late 2010 set out to raise up to Sh200 million from members of the Sacco and even non-members, but was adjudged by the market regulator to have breached regulations which bar firms from raising capital from the general public without CMA’s approval.
A disclosure document seen by the Business Daily shows that the Sacco had already raised Sh65 million, when the share offer was stopped.
About Sh34 million of the amount was raised from existing shareholders and Sh31.1 million from non-members.
“Regularisation was approved for inviting investors to join the Sacco,” chief executive Tony Mwangi told the Business Daily.
The funds had been kept in an escrow account pending CMA’s investigations into the share offer.
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