By Andrew Mwanandiye Tembo
Illovo Sugar Malawi Plc shareholders have given the green light to the company’s Board of Directors to borrow USD 45 million with an option to add USD 15 million from Sucoma Holdings Limited. The loan aims to settle an intercompany debt of USD 72 million.
Illovo Sugar Malawi ‘s Board Chairman Jimmy Lipunga confirmed this during group ‘s extraordinary Annual General Meeting(AGM)on Tuesday, in Blantyre.
“We are pleased that our shareholders have approved this proposal, which will provide immediate foreign currency liquidity to enable the settlement of the Illovo Group’s intercompany payables,” said Lipunga,.
Lipunga added that the loan from Sucoma, a major shareholder in Illovo Sugar Malawi will ease the pressure on internally generated and locally sourced foreign currency, thereby preserving financial flexibility.
Frank Harawa, general secretary of the Minority Shareholders Association of Listed Companies in Malawi(MISALICO) emphasized the importance of the loan.
“This loan is a must for the company as it will ensure growth of production in addition to ensuring that other shareholders do not lose shareholding.”he said.
The company cited foreign currency shortages as one of the factors contributing to the accumulation of payables to sister companies, such as Illovo Sugar Johannesburg, over a period of four years.
