NAIROBI, Kenya, Jan 3 – Bid Investments has withdrawn its offer to buy shares in Rea Vipingo Plantations (RVP) in favour of its subsidiary, Vania Investment Pool Limited.
Bid established the company for the purpose of making a competing tender for the largest sisal producer in Africa.
Their offer price, however, still remains at Sh55 per share.
The competing offer by Vania to acquire Rea Vipingo Plantations is the highest and tops Centum’s bid of Sh50 made on December 3, 2013 and REA Trading of Sh40 made on 13 November 2013.
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 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.