By Nomfanelo Maziya | 2024-10-22

Inala Capital Limited (Inala) has announced plans to buy back shares from qualifying shareholders.

Inala Capital has two key entities, Alliance Foods (Pty) Limited, operating as KFC Eswatini and General Africa Foods Eswatini (GAFE).

According to a press statement issued by the investment company, this share repurchase programme is specifically designed for shareholders who hold less than 100 000 ordinary Inala shares.

“Notice is hereby given to all shareholders of Inala Capital Limited (‘Inala’ or ‘the Company’) that at the Annual General Meeting (‘AGM’) held on  July 26, the necessary shareholder approval through a special resolution was granted to implement the Share Repurchase programme,” it reads.  

The Share Repurchase programme will be open to Share Repurchase Participants for a period of 15 Business days. The company has set a repurchase price of E1.20 per share has opened a window for shareholders to tender their shares from October 28, to November 15.

To participate, shareholders must be registered as owners of less than 100 000 Inala shares as of October 25. Those who wish to participate, could contact African Alliance Eswatini Securities Limited, the broker handling the repurchase, by email or in person.

This programme offers smaller shareholders the opportunity to sell their shares back to the company at a fixed price, potentially providing liquidity and potentially a favorable price compared to the current market value.

However, it's important for shareholders to carefully consider their individual investment goals and consult with a financial advisor if they have any doubts about participating.
“Please note that participation in this programme is entirely voluntary,” it reads.

The decision to tender shares should be based on a thorough evaluation of the program's terms and the shareholder's specific circumstances.

Inala Capital’s principal objective was to carry on business as an investment holding company to provide investors with attractive long-term returns. Inala Capital focused on investing in companies which demonstrate strong fundamentals and good growth prospects, where Inala Capital believes it can add value.

The company’s primary investment geography was in the Kingdom of Eswatini. Where opportunities were unavailable, the company would seek opportunities in the Southern African Development Community (‘SADC’).

According to Inala Capitals’s reviewed financial results for the period ended on June 30,  the majority of Inala Capital's non-current assets consist of investments in associates, valued at E30.3 million.

It generated revenue of E818.2 thousand primarily from dividend income and earned E1.5 million in investment income, primarily from interest on fixed income investments and money market returns.

It’s total operating expenses amounted to E2.3 million, reporting a loss before tax of E62 000.  Inala Capital's investment in Alliance Foods (trading as KFC Eswatini) has continued to deliver impressive results. KFC Eswatini has solidified its position as the leading quick service restaurant brand in Eswatini.

However, General Africa Foods Eswatini (GAFE), an early-stage investment, has faced ongoing challenges due to lingering market disruptions caused by the COVID-19 pandemic.

In response to these dynamics, Inala Capital has entered into negotiations with Greystone Partners to dispose of its 5.97 per cent shareholding in GAFE and acquire a 72.73 per cent shareholding in Alliance Foods through a share swap transaction.

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