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.
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.
Announcing the resumption of the offer, REAT Chairman Richard Robinow, said that the settlement was underpinned by a desire to resolve the matter in a manner that best serves interests of the firm’s shareholders.
“We are delighted by this new development. We hope that the other shareholders of REA Vipingo Plantations will support our bid. We are determined to continue with sisal farming after successful conclusion of the offer to maintain the firm’s position as the leading sisal producer in East Africa. REA Trading has been a long-term investor in Rea Vipingo Plantations and has a proven track record in managing plantations across the world,” said Robinow.
The proposed sales of land and Rea Vipingo subsidiary, Vipingo Estates Limited, are however subject to the shareholders of RVP passing an ordinary resolution at a general meeting to be held on April 28, 2015.
Centum and REAT were among the highest and competing bidders for the take-over of Rea Vipingo, a move that brought about contention between the two firms.
Centum currently holds a 0.49 percent stake in Rea Vipingo, while REAT is the largest shareholder with a 57.04 percent stake in the sisal producer.