ZAMBIA Sugar Plc’s minority investors have bemoaned lower dividends offered to shareholders despite the company’s continued impressive performance. But Zambia Sugar management says the company still owes about K1 trillion debt borrowed from financial institutions to finance the expansion of the Nakambala project.
Speaking in Mazabuka at the shareholders’ open day held on Friday last week, Charles Matondo, a shareholder, said dividends are still low despite the company making profits.
According to the 2012 annual report, the directors will, during the annual general meeting to be held in Lusaka, propose a final dividend for the year ended March 31, 2012 of K1 per share that will result in a total dividend of K9.90 per share given to shareholders compared to K3.55 offered last year.
“Shareholders have tightened their belts for too long without getting benefits from the company. The dividend of K1 per share is very small,” Mr Matondo said.
He also wondered how long the company would take to repay the debt to allow shareholders to enjoy the fruits of their investments.
Webster Shamfuti, another shareholder, called on other investors to support the company adding that Zambia Sugar is a public firm that belongs to Zambians.
“Personally, I have seen the company grow to what it is today. Let us support management, Zambia Sugar is a public company that belongs to us,” he said.
He said the company still has a huge debt that needs to be repaid, adding that there is need to balance what employees get as salaries and the shareholders’ dividends.
Responding to shareholders’ concerns, Zambia Sugar corporate affairs manager Lovemore Sievu said the company’s net financing costs are still large.
Mr Sievu said this year; Zambia Sugar is expected to pay K155.4 billion interests on the money borrowed.
“As shareholders you agree to borrow some money to bring in the big factory that we now have. Before you can get your money (dividend), the financiers of the expansion project have to be given their money first.
“Once you pay off the debt, the factory will be completely yours. As of last year, you owed the bank K1 trillion,” he said.
Meanwhile, addressing journalists, Mr Sievu said the purpose of the shareholders’ open day is to provide a forum where investors can dialogue with management, appreciate their investment, ask questions and get clarifications on any pending query.
He said the company has also introduced an electronic voting system, which will be used by shareholders at the annual general meeting.
[Zambia Daily Mail]
WELL DONE SIEVU
Good that the shareholders are being educated. They clearly do not understand operations of a company
sugar is sweeter than a woman
Electronic voting system is fraudulent and where the interested parties have no access to the source code operating the technology, they are due to get screwed. The system has no audut trails, and no paper to use to check the paper trail. It is a fraud.
what are a quality and even well-known internet sites to get blogs and forums???
Workers are lowery paid far below minimum wage