NamFish shareholders buck the board

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.