- The shareholder approval of the investment will result in Delta International FZE owning an 84 percent stake in NBV, pending all regulatory approvals.
- This approval paves the way for NBV to venture into new businesses including trading and the manufacturing of sustainable products.
Nairobi Business Ventures (NBV) shareholders have approved a Sh83 million investment by Dubai-based Delta International FZE.
The approval gives Delta International FZE an 84 percent stake in NBV, pending all regulatory approvals.
Shareholders additionally approved splitting the shares into two which should result in greater liquidity in the stock.
The approval paves the way for NBV to venture into new businesses including trading and the manufacturing of sustainable products.
“NBV will greatly benefit from Delta International FZE vast experience in trade, services and manufacturing of sustainable products,” said NBV Chairman Sheth Kumar Harshard in a statement.
NBV was established as a leather products retail chain operating under the brand name “K Shoe” but has made the strategic decision to exit the retail businesses, which is facing numerous challenges.
NBV will venture into trade and the manufacturing of sustainable products.
“NBV’s outlook is bright and we plan to become a major manufacturer of sustainable products in the coming years,” said NBV CEO Abotula Vasu.
The Sh83 million investment will additionally result in the creation of 415 million new shares tradable on the Nairobi Securities Exchange (NSE).
ABC Capital were the transaction advisors and MW & Company Advocates LLP were the legal advisors.