REA Vipingo shareholders approve land sale to Centum

April 30, 2015
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Shareholders of REA Vipingo Plantations voted in favour of the resolution at an Extraordinary General Meeting/FILE
Shareholders of REA Vipingo Plantations voted in favour of the resolution at an Extraordinary General Meeting/FILE
NAIROBI, Kenya Apr 30 – Shareholders of REA Vipingo Plantations have approved sale of the firm’s land in Vipingo to Centum Investment as agreed upon in the settlement with REA Trading Limited (REAT).

Shareholders of REA Vipingo Plantations voted in favour of the resolution at an Extraordinary General Meeting (EGM).

This paves way for the conclusion of the buyout by REAT, which already holds 57 percent of the sisal grower that is listed on the Nairobi Securities Exchange (NSE).

In the deal, Centum will acquire a total of 9,646 acres of land in Vipingo at a price of Sh180,000 per acre as well as take Rea Vipingo’s subsidiary, Vipingo Estates Limited which owns approximately 900 acres of land, at a price of approximately Sh340 million.

READ: Centum, REAT finally agree on Rea Vipingo buyout

REA Vipingo Limited Chairman Oliver Fowler said what remains now is for each individual shareholder to decide on the offer that has been put on the table by REAT.

REAT is offering shareholders of Rea Vipingo Plantations Limited a premium offer price of Sh70. In addition to this, shareholders who accept the REAT offer will be entitled to a cash top-up of Sh15 per share payable immediately after the closing date.

“As a board, we have recommended, based on an independent evaluation that we commissioned, for shareholders to accept the offer,” Fowler said.

REAT has already received regulatory approval from the Capital Markets Tribunal for its bid to acquire fully, all the listed shares in Rea Vipingo Plantations Limited following a settlement agreement with Centum Investment Company.

READ: REAT gets approval to acquire Rea Vipingo

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