Old Mutual Holdings PLC will seek shareholder approval for a proposed balance sheet restructuring aimed at strengthening its financial position and enhancing its future capacity to distribute dividends.
The proposal will be presented at the company’s 18th Annual General Meeting (AGM) scheduled for June 30, 2026.
It involves reducing the group’s share premium account and applying the amount to offset accumulated losses reflected on its balance sheet.
In a press release today, Old Mutual Group Chief Executive Officer Arthur Oginga said that the restructuring is intended to improve financial flexibility, strengthen the balance sheet, and enhance future dividend-paying capacity.
The proposal, he added, will not involve any cash payment to shareholders, affect ownership interests, or impact the Group’s operations, liquidity, cash flows, or underlying business performance.
“This is an important step in strengthening our financial position and restoring greater flexibility for future shareholder returns as the business continues to grow and deliver sustainable performance,” said Oginga
He said the proposal supports the company’s efforts to optimize its balance sheet, enhance financial flexibility, and position the business for sustainable long-term growth and value creation.
The proposed restructuring comes amid improving financial performance across Old Mutual’s operations in Kenya, Uganda, and Rwanda.
The group has recorded profits for the past two consecutive years, including a profit after tax of Sh856 million for the year ended December 31, 2025.
Despite the return to profitability, accumulated losses from previous periods remain on the balance sheet. As of December 31, 2025, retained losses stood at Sh7.06 billion.
Under the proposal, Sh4.66 billion held in the share premium account would be used to reduce these historical losses, improving the company’s ability to pay dividends in future when deemed appropriate.
The Board has unanimously recommended that shareholders approve the proposal, saying it is in the best interests of the company and its shareholders, as it supports efforts to strengthen the balance sheet and drive sustainable long-term growth.
If approved by shareholders, the transaction will also require confirmation by the High Court of Kenya before taking effect.
By Wangari Ndirangu
