Court halts Rea Vipingo takeover
A Rea Vipingo sisal estate in Kilifi County. Sisal grower Rea Vipingo Plantations has announced it is no longer listed on the Nairobi Securities Exchange (NSE), with effect from September 17. PHOTO/FILE
What you need to know:
- Centum seeks orders for a tribunal to be set up to hear its complaints against the CMA
hThe takeover of Rea Vipingo plantation was stopped Thursday pending the hearing of a case filed by Centum Investment Limited.
The Chris Kirubi majority-owned investment company went to court under a certificate of urgency to stop the takeover and other issues.
Top on the list was to compel Treasury Cabinet Secretary Henry Rotich to appoint three members to the Capital Markets Tribunal.
The five-member tribunal currently has only two members after the term of the other three ended. Mr Rotich is yet to name replacements as required by law.
Pending the determination of the appeal, Centum wants the transfer of Rea Vipingo shares to Rea Trading Limited frozen, said an order issued by the court Thursday.
TAKEOVER RULES
The investment firm wants the Capital Markets Tribunal fully constituted to hear its complaint against the Capital Markets Authority over how it handled the takeover bid.
In its appeal to the tribunal, Centum Investment is seeking a declaration that the offer by Richard and Jeremy Robinow, owners of Rea Trading Limited, to buy Rea Vipingo Holdings violates Kenya’s takeover rules.
“Capital Markets Authority fundamentally erred in law and in fact in failing to appreciate that a promise for a future disposition of the proceeds from the sale of a company’s assets cannot constitute consideration for a take-over offer and is in any event void for uncertainty,” said Centum in the appeal to the tribunal.
