Local investors on Tuesday bought a 35,9% stake in Pelhams through a special bargain deal worth $2,5 million.
The deal was executed by ISB brokers for 358 207 502 Pelhams shares at $0,71 cents.
A special bargain occurs when buyers on the stock market purchase a large amount of shares at a special price agreed by the seller, the price would be at a premium of the prevailing trading price. During normal trade Pelhams share price was trading at $0,55, but under the special bargain it was sold for $0,71.
The furniture retailer company has 995,6 million shares in issue.
The company’s turnover in the first quarter of the reporting period April to June increased by 3% to $3 million from the full-year ended March 2011. Speaking at an annual general meeting in July this year, Pelhams Limited chief executive officer, Oswell Musoha, said sales for the first quarter were 35,4% of total turnover and 131% above sales in the comparable period.
Sales volumes on major lines in the first quarter were 106% up from the same period last year. With 3 856 units having been sold compared to 1 868 units same period last year.
On operations, Musoha said the local supply base has continued to improve and with it credit terms although prices remain high due to the high costs of production as a result of capacity limitations. Credit sales contributed 71% of total sales in the first quarter.
