•NBV shareholders have approved a Sh83 million investment by Dubai based-Delta International FZE in the loss-making listed firm.
•The approval gives Delta International FZE an 84 per cent stake in NBV, pending all regulatory approvals.
The Nairobi Securities Exchange(NSE) has extended the suspension from trading of Nairobi Business Ventures (NBV) Limited shares until end of November.
This is to allow for the completion of the company’s restructuring exercise which includes a share split, allotment and issuance of shares to Dubai-based Delta International FZE (Delta), and subscription agreement between NBV and Delta.
“The extension of suspension from trading of the company’s shares will remain in force until November 30,2020,” said NSE in a notice.
NBV shareholders have since approved a Sh83 million investment by Delta International FZE in the loss-making listed firm.
The approval gives Delta International FZE an 84 per cent stake in NBV, pending all regulatory approvals.
Shareholders additionally approved splitting the shares into two which should result in greater liquidity in the company's stock.
The approval paves the way for NBV to venture into new businesses including trading and the manufacturing of sustainable products, management said.
“NBV will greatly benefit from Delta International FZE vast experience in trade, services and manufacturing of sustainable products,”chairman, Sheth Kumar, said.
NBV was established as a leather products retail chain operating under the brand name “K Shoe”.
It is however exiting the retail businesses,where according to management, it is facing numerous challenges.
“NBV’s outlook is bright and we plan to become a major manufacturer of sustainable products in the coming years,” CEO Abotula Vasu said.
The Sh83 million investment will additionally result in the creation of 415 million new shares tradable on the NSE.
ABC Capital are the transaction advisors and MW & Company Advocates LLP legal advisors in the deal.