Shareholders of Old Mutual Holdings PLC have approved a non-cash balance sheet restructuring designed to slash historical accumulated retained losses and fast-track the company’s return to paying dividends.
The proposal was passed via a special resolution during the company’s 18th Annual General Meeting (AGM) held on Tuesday, June 30, 2026.
The restructuring centers on optimizing the company’s equity structure without impacting its cash reserves.
- The Transaction: Old Mutual will reduce its share premium account by transferring Ksh. 4.67 billion directly to its accumulated retained losses.
- The Target: As of December 31, 2025, the group’s accumulated retained losses stood at Ksh. 7.064 billion. This transfer will significantly shrink that deficit.
- The Goal: Rebuilding distributable reserves to accelerate the resumption of dividend payments to shareholders.
This initiative is a core component of a broader balance sheet optimization plan first approved by the Board in 2023. It is being executed on the back of Old Mutual’s return to profitability over the last two consecutive years.
Old Mutual Group CEO Arthur Oginga noted that the shareholder vote represents a strong vote of confidence in the company’s financial turnaround strategy.
“This is an important step in strengthening our financial position and restoring greater flexibility for future shareholder returns as the business continues to grow and deliver sustainable performance. The approval supports our ongoing efforts to optimize the balance sheet, enhance financial flexibility, and position the business for sustainable long-term growth.” Arthur Oginga, Old Mutual Group CEO
To ensure transparency, the company clarified the exact parameters of the restructuring:
- No Share Dilution: The transaction does not reduce the number of shares held by investors, nor does it affect their proportionate ownership in the company.
- Non-Cash Event: It does not involve any cash payments or physical distribution to shareholders.
- Zero Operational Impact: The restructuring will have no impact on Old Mutual’s day-to-day operations, liquidity, cash flows, or underlying business performance.
With shareholder approval secured, the transaction will now move to the High Court of Kenya for formal confirmation and the issuance of a court order before it officially takes effect.