The board, concerned about emerging financing risks, has halted Standard Group rights issue it had proposed to raise additional capital for restructuring its fledgling business, saying the suspension would give it time to assess its financing option given “the prevailing market conditions”.
“The Board of Directors of the Standard Group Plc wishes to inform its shareholders that, following a resolution passed at a Special Meeting of the Board held on 4th February 2026, the board resolved to suspend the previously proposed Rights Issue,” the board said in a statement filed at the Nairobi Securities Exchange.
It said the decision to suspend the Standard Group rights issue was taken after careful consideration of prevailing market conditions and strategic financing options, with a view to safeguarding shareholder value and ensuring that any future capital-raising initiatives are aligned with the best interests of the company and its shareholders. Market observers speculated that the company’s principal shareholders may have decided to pump in more cash.
The Standard Group Plc, one of the two listed media houses, was set to execute a Ksh 1.5 billion rights issue in 2025, approved by the Capital Markets Authority. The cash call approved by the Capital Markets Authority July 2025, aimed to restructure debt, enhance digital expansion, and strengthen working capital, offering a 16% discount on shares to shareholders. This follows a 2024 turnaround strategy aimed at mitigating declining legacy advertising revenue.
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The Standard Board said the suspension is intended to allow the company additional time to reassess the structure, timing, and viability of the proposed transaction, taking into account evolving market and operational considerations. The decision was taken prudently and does not reflect any adverse change in Standard Group’s underlying business or governance. “Shareholders are advised that the suspension does not constitute a cancellation of the Rights Issue,” it said.
The Board said it shall continue to evaluate the company’s funding strategy and will communicate any material developments in accordance with the Companies Act, 2015, the Capital Markets Authority Code of Corporate Governance Practices for Issuers of Securities to the Public (2015), and the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
The rights issue had been structured at a ratio of 11 new ordinary shares for every 3 ordinary shares held. The rights issue follows approval by shareholders at the Annual General held on 2nd September 2024.
A rights issue is an offer to existing shareholders to buy additional shares and offers companies a chance to raise additional capital to finance their strategies without going for expensive options such as debt. The shares offered are at a discount to the prevailing market price.
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