NAIROBI, Kenya, Sep 18 – Rea Vipingo Plantations has finally been delisted from the Nairobi Securities Exchange (NSE) following a successful takeover by REA Trading Limited (REAT).
REAT received regulatory approval from the Capital Markets Tribunal for its bid to acquire fully, all the listed shares in Rea Vipingo Plantations Limited following a settlement agreement with Centum Investment Company.
In the deal, Centum acquired 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 offered shareholders of Rea Vipingo Plantations Limited a premium offer price of Sh70. In addition to this, shareholders who accepted the REAT offer will be entitled to a cash top-up of Sh15 per share payable immediately after the closing date.
REAT now controls 94.62 per cent of the issued share capital up from 57 percent after most of the 5,874 shareholders accepted the buyout.
Those who rejected the offer would have a 5.38 percent stake in Rea Vipingo despite its realising the 90 percent acceptance threshold allowing a compulsory acquisition.
READ: Centum, REAT finally agree on Rea Vipingo buyout
Earlier, REAT Chairman Richard Robinow had stated 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.
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.