MFS dilutes small shareholder stake

An EGM of MFS Holdings Pcl (MFS), which is controlled by majority owners who are at the same time shareholders in other group companies passed numerous resolutions diluting the stake of small shareholders, in yet another example why investors should never invest in companies other than banks.

The EGM, notification for which was received by small shareholders after the event was held approved the increase of the Company’s authorised share capital from CYP 12 mln divided into 30 mln shares of nominal value of 40 cent each into CYP 14.8 mln divided into 37 mln shares of nominal value of 40 cent each.

It also approved the motion to allocate up to 1.6 mln MFS shares of nominal value of 40 cent each to the shareholders of MFS Ventures Ltd, in the ratio of 1 MFS share for every 2 MFS Ventures Ltd shares held, and a bonus issue of up to 600.000 MFS shares to MFS executive management, and offer up to 4.8 mln MFS shares for the acquisition of companies and/or immovable properties and submit an application for the listing of 7 mln shares as stated in 2-4 above.