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Unga Group takeover bid above board, says CMA

NAIROBI, Kenya, Feb 16 – The Capital Markets Authority has advised investors to be cautious about the proposed takeover of Unga Group by US-based Seaboard Corporation.

The Authority says misleading information may be disseminated to suit partisan interests in reference to media reports that have questioned the role of the regulator in the takeover bid.

In addition, the CMA has clarified that the process of the transaction is at a very early stage where Seaboard Corporation has issued a Notice of Intention with several stages in the pipeline before the Authority okays the deal.

“Among these stages, which are yet to occur in the case of Unga, include service of an Offeror’s Statement, Offer Document and the issue of a Shareholder Circular,” says the market regulator in a statement, adding that the takeover and mergers regulations have been adhered to.

Trading of Unga Group shares was temporarily halted with the share price gaining from Sh29 to Sh45 in seven days after information of the takeover bid became public.

Seaboard, which currently holds 2.29 percent stake in Unga Group, has proposed a cash offer for ordinary shares in Unga Group that are currently not owned by the corporation or its affiliates.

The corporation said the offer price will be Sh40 per ordinary share valuing the deal at Sh3.03 billion.

Unga Revenues hit Sh19.5 billion in its full-year results ending June 30, 2017.

Sea Board is one of the largest United States companies engaging in pork production and processing and ocean transportation.

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