NAIROBI, Kenya Dec 16 – Waguthu Holdings Kenya Limited is set to acquire a controlling in coffee company Eaagads Limited.
In a notice to NSE Chief Executive Peter Mwangi, Eaagads Director Fabian Fillipart said Waguthu was in the process of acquiring all the issued shares of Socfinaf Limited, parent company of Eaagads Limited.
In a statement dated December 10 Waguthu is said to be interested in 9,927,510 (valued at Sh1.25 per share) ordinary shares of Socfinaf representing a 62 percent stake in Eaagads.
“Upon completion of the transaction, Waguthu Holdings will indirectly acquire effective control of Eaagads Limited,” the statement reads.
Socfinaf limited acts as the managing agent for Eaagads. Both are renowned coffee planters with Scofinaf based in Thika while Eaagads in Ruiru.
Eaagads is listed on the Alternative Segment of the Nairobi Stock Exchange.
Despite the implication of buying the 62 percent stake, Waguthu Holdings is said not to be interested in making a take-over bid for Eaagads.
The deal is however subject to the Capital Markets Authority and Treasury approval.