, NAIROBI, Kenya, Jan 28 – UAP Holdings Limited has suspended trading of its shares which are moved on the Over-The-Counter market effective Wednesday, January 28.
The approval by the Capital Markets Authority (CMA) follows an increase by Old Mutual Holdings Limited stake in UAP Holdings Limited to 60.66 percent.
“Old Mutual Holdings Limited has suggested that UAP Holdings Limited suspends the trading of its shares on the Over-The-Counter market to curb any detrimental effect of speculative trading on the share price of UAP shares,” UAP company Secretary Nkirote Njiru said in a statement.
“The Board of Directors of UAP has considered this request, consulted with the Capital Markets Authority and determined to suspend the trading of shares on the Over-The-Counter market with effect from January 28, 2015 until further notice,” she said.
Old Mutual initially acquired 23.33 percent stake in UAP held by Centum Investment Company and its chairman Dr Chris Kirubi.
The firm also bought 37.3 percent shareholding from private equity firms including Abraaj Group, AfricInvest and Swedfund.
READ: Old Mutual to acquire majority stake in UAP
Old Mutual however says it does not intend to make a takeover offer to the remaining shareholders and instead plans to move the company to an eventual listing at the Nairobi Securities Exchange (NSE).
The combined UAP and Old Mutual businesses in Kenya that will be enhanced include Insurance, Investment Management, Properties, Banking and Securities Brokerage.
UAP operates in six African countries including Kenya, Uganda, South Sudan, Rwanda, DR Congo and Tanzania, with more than 650,000 customers.