Red Star Express had secured shareholders’ approval to transit to holding company and raise additional capital. The new capital raising could be raised through debt issue, equity issue or a combination of both equity and debt.
Its Chairman, Dr Mohammed Koguna, has said the company plans to change its operating structure from group to holding company to reflect its business expansion and other emerging opportunities.
According to him, the change to holding company is necessitated by the various initiatives the company seeks to explore and the need to have a more structured accounting system.
“These are part of the company’s expansion plans aimed at taking full advantage of business opportunities,” Koguna said.
Koguna, who owns the largest equity in the company, said the group has identified some growth platforms that will become full subsidiaries in the years ahead.
“We will continue to be innovative so as to ensure the steady growth of the company, which would bring about sustained progression in terms of returns on investments. Our watchword in the management of both our human and capital resources will be to focus on cost efficiency, and concentrate on opening new horizons that will ensure we remain the market leader in our industry,” Koguna said.