Feb 28 deadline for new offers on Vipingo takeover

February 5, 2014
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The Authority says in case of variation of any existing offer, the party shall also be required to serve the requisite notice by the same date/FILE
The Authority says in case of variation of any existing offer, the party shall also be required to serve the requisite notice by the same date/FILE
NAIROBI, Kenya, Feb 5 – The Capital Markets Authority (CMA) has set a deadline of February 28 for notice by any person intending to make a new offer to buy out Rea Vipingo Plantations (RVP).

The Authority says in case of variation of any existing offer, the party shall also be required to serve the requisite notice by the same date.

The timetable of the offers may then be harmonised to enable shareholders make an informed decision.

There are currently three bidders for shares of RVP, the largest sisal producer in Africa.

These include Vania Investment Pool Limited with an offer price of Sh55 per share and Centum Investment which has offered Sh50 per share. Rea Trading has placed a bid of Sh40 per share.

On Monday, Bid Investments withdrew its offer to buy shares in RVP in favour of its subsidiary, Vania Investment Pool Limited.

Centum currently holds a 0.49 percent stake in Rea Vipingo, while REA Trading is the second largest shareholder with a 57.04 percent stake in the sisal producer.

RVP owns and operates sisal farms in Kenya and Tanzania and is the largest sisal fibre producer in Africa.

The group is organised 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.

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