Money market analysts have said Blantyre Hotels (BHL) plc’s rights offer is the best long-term investment which gives hope that the hospitality company’s business will return to profitability by 2027.
The rights issue, expected to raise K62.4 billion, was approved at the company’s extraordinary general meeting in Blantyre last month to fund the completion of BHL’s four-star 180-bed golf estate hotel situated on the Lilongwe Golf Club course.
In an analysis after the Initial Public Offer of BHL rights shares, which opened on November 25 and closes on December 6, financial consultant Audrey Mwala said the stocks valued at K12.38 per share are a good bargain to long-term investors.
“In the case of Blantyre Hotels, each shareholder is given the right to buy six shares for every one share they hold at K12.38, which is a discount from the current price of K14. There is an immediate benefit from that aspect,” she said.
The hotel project, according to BHL plc board chairperson Vizenge Kumwenda, is expected to be completed in early 2026.
Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said the rights issue is important, adding that having one hotel made it hard for BHL to compete on the market.
BHL is 34.34 percent owned by Nico Life Insurance Company Limited, 32.15 percent by Africap LLC, 26.30 percent by Press Trust and 7.21 percent by the public.
