NamFish shareholders buck the board

By: AUGETTO GRAIG

SHAREHOLDERS in Namibian Fishing Industries Limited (Namfish) recently rejected a proposal from the company's board of directors to issue additional shares to be used to recapitalise the company.

On December 30, Namfish announced the results of its general

meeting held the previous Tuesday when shareholders voted against a

special resolution proposed by the company's directors to increase

the authorised share capital through the creation of 300 million

new ordinary shares.

Yesterday Sam Alfheim, the company secretary, confirmed that 89

024 862 of the existing 100 million ordinary shares have been

issued to date.

 

"The purpose of the proposed increase in the authorised share

capital of the company is to enable it to implement a rights offer,

if so required to recapitalise the company," said a circular issued

to shareholders at the start of December last year.

 

According to the circular, the company had incurred a

significant loss for the financial year ended April 30 2003 and

that uncertainties facing the company in this financial year; such

as the volatility of the Namibia dollar, quota allocations and

catch rates, made positive forecasts difficult.

 

Alfheim pointed out that the stronger Namibia dollar

significantly affected the company's income as virtually all

production is sold on the overseas markets.

 

Trading in hake was affected by lower than normal catch volumes

during the winter period and a high percentage of small, low value

fish in the catch mix; while monk fish prices also experienced

pressure in world markets, he said.

 

Meanwhile Lobster prices in Japan have been low and catching

vessels have only been out catching since the New Year, he

added.

 

According to finance24.co.za, revenue for the company decreased

by 24 per cent in the 2002/2003 financial year.

 

The news site quotes the company as saying, "Cash flow was

adversely affected by these results, which together with necessary

capital expenditure and the investment in Namsea increased

borrowings and gearing significantly".

 

Alfheim confirmed that Namfish now owns 34,99 per cent of the

issued share capital of Namsea and has representation of the Namsea

board.

 

The board had recommended an increase in share capital from N$5

000 000 comprising 100 000 000 ordinary shares of 5 cents each to

N$20 000 000 comprising 400 000 000 ordinary shares of 5 cents

each.

 

It also wanted the placing of the newly created shares under the

control of the company's directors.

 

Yesterday Alfheim explained that at the general meeting, "the

majority of shareholders felt that the existing available unissued

share capital would be sufficient to raise additional income should

the need arise".

 

Alfhiem added that summer catch patterns have set in as from the

middle of December, resulting in increased volumes and a

significant reduction in the number of small, low value fish in the

catch mix.

 

"This, together with a weakening of the local currency, should

positively affect sales realisations," he concluded.

 

The top shareholders in NamFish are Frans Indongo Trust, Sea

Harvest Corporation Limited and Standard Bank Nominees (TVL) (Pty)

Ltd.

 

Yesterday Sam Alfheim, the company secretary, confirmed that 89 024

862 of the existing 100 million ordinary shares have been issued to

date. "The purpose of the proposed increase in the authorised share

capital of the company is to enable it to implement a rights offer,

if so required to recapitalise the company," said a circular issued

to shareholders at the start of December last year. According to

the circular, the company had incurred a significant loss for the

financial year ended April 30 2003 and that uncertainties facing

the company in this financial year; such as the volatility of the

Namibia dollar, quota allocations and catch rates, made positive

forecasts difficult. Alfheim pointed out that the stronger Namibia

dollar significantly affected the company's income as virtually all

production is sold on the overseas markets. Trading in hake was

affected by lower than normal catch volumes during the winter

period and a high percentage of small, low value fish in the catch

mix; while monk fish prices also experienced pressure in world

markets, he said. Meanwhile Lobster prices in Japan have been low

and catching vessels have only been out catching since the New

Year, he added. According to finance24.co.za, revenue for the

company decreased by 24 per cent in the 2002/2003 financial year.

The news site quotes the company as saying, "Cash flow was

adversely affected by these results, which together with necessary

capital expenditure and the investment in Namsea increased

borrowings and gearing significantly". Alfheim confirmed that

Namfish now owns 34,99 per cent of the issued share capital of

Namsea and has representation of the Namsea board. The board had

recommended an increase in share capital from N$5 000 000

comprising 100 000 000 ordinary shares of 5 cents each to N$20 000

000 comprising 400 000 000 ordinary shares of 5 cents each. It also

wanted the placing of the newly created shares under the control of

the company's directors. Yesterday Alfheim explained that at the

general meeting, "the majority of shareholders felt that the

existing available unissued share capital would be sufficient to

raise additional income should the need arise". Alfhiem added that

summer catch patterns have set in as from the middle of December,

resulting in increased volumes and a significant reduction in the

number of small, low value fish in the catch mix. "This, together

with a weakening of the local currency, should positively affect

sales realisations," he concluded. The top shareholders in NamFish

are Frans Indongo Trust, Sea Harvest Corporation Limited and

Standard Bank Nominees (TVL) (Pty) Ltd.

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