The Capital Markets Authority says in the interest of the shareholders of the company, trading of RVP shares on the Nairobi Securities Exchange has been suspended.
“The Directors of REA Vipingo Plantations Limited were, on 12th November 2013, served by REA Trading Limited with a notice of intention to acquire all of the issued shares of the company that the offeror does not already beneficially own,” CMA says in a statement.
RVP owns and operates sisal farms in Kenya and Tanzania and is the largest sisal fibre producer in Africa.
The group is organized into two divisions; Agriculture (cultivation, production of sisal fibre and cultivation of horticultural crops) and spinning services (conversion of sisal fibre into yarns and twines).
The bulk of group sales are made to a related party (Wigglesworth) at market price.
REAT currently holds a 57.04 percent holding in RVP.
An offer document will be sent out to shareholders within 75 days of today’s press notice, and they will have at least 30 days to accept or reject the offer.
The threshold for delisting is 90 percent acceptance rate.
The transaction is to be completed no later than 30 April 2014.
“The offer is subject to several conditions and various regulatory approvals. Further details will be made available to shareholders upon receipt by the company of the offeror’s statement in accordance with the Capital Markets (Take-Overs and Mergers) Regulations, 2002,” the statement adds.