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August 21, 2018

Unga Group off NSE list from tomorrow

An Investors looks at the Daily tradings at the Nairobi security exchange in Nairobi on June 30,2017.
PHOTO/ENOS TECHE.
An Investors looks at the Daily tradings at the Nairobi security exchange in Nairobi on June 30,2017. PHOTO/ENOS TECHE.

Unga Group shares shed 4.97 per cent of traded shares yesterday ahead of the suspension of trading at the Nairobi Securities Exchange tomorrow.

As at close of market yesterday, Unga Group had shed Sh2, trading at Sh38.25 at close, ahead of buyer Seaboard Corporation’s announcement detailing how many ordinary shares it has acquired from minority shareholders. 

The minority collectively own 14.07 per cent stake in Unga Group.

The American corporation will also include a declaration as to whether the offer has become unconditional in July 2.

sh40 offer

“Assuming the offer is declared to be unconditional in all respects, Seaboard will settle in cash the offer price to those shareholders who have accepted it. The process of payment will commence on or around Friday July 12,” latest documents on the offer seen by the Star read.

Yesterday, Seaboard expressed confidence its offer to buy the minority shares in Unga Plc with the objective of eventual delisting it from the NSE will result in it achieving a sufficient level of support to meet this objective.

It has proposed an offer price of Sh40 - which represents a premium of 31.75 per cent to Sh30.36 being the 250-day volume weighted average price of a share in Unga as of the value date. 

minority shareholder risks

Currently, it owns 35 per cent stake of Unga Group valued at about Sh3.03 billion.

Through this acquisition,it seeks to bundle up its shares with those of Victus Limited ( 50.93 per cent )to hold not less than 90 per cent of the miller.

Shareholders who choose not to sell their shares and remain with the company have however been warned of serious implications if Seaboard delists from the exchange.

“If the offer closes and the company delists from NSE, then the process of price discovery and of trading in the shares of the company will be a much more prolonged process than is currently the case – resulting in significantly lower liquidity of the shares,” the documents read.

 

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