Rea Vipingo sale awaits naming of full tribunal

Failure by the National Treasury Cabinet Secretary Henry Rotich to appoint a secretary to the Capital Markets Tribunal has delayed hearing of an appeal by Centum on the intended takeover of Rea Vipingo.

The investment firm, which is opposed to the buying of the sisal producer by two brothers under Rea Trading, moved to the High Court seeking to compel Mr Rotich to nominate officials to the tribunal so that their appeal over approval by Capital Market Authority okaying the takeover, case can be heard.

The minister nominated two additional members in a gazette notice dated July 11, 2014 but did not appoint a secretary.

In a letter addressed to the Attorney General and filed in court on Thursday last week, Centum notes that although the CS appointed two more members to the tribunal raising the quorum, lack of a substantive secretary leaves the tribunal ineffective.

Section 35A (1) of the Capital Markets Act provides that the tribunal shall consist of the members and a secretary appointed by the minister.

“It, therefore, follows that unless a secretary is appointed under Section 35A (1) (e) of the Act, the tribunal is improperly constituted for purposes of hearing the appeals currently pending before it,” Centum said.

CONDITIONAL BONUS

In its application which has been pending before the Capital Markets Tribunal, Centum is opposed to Richard and Jeremy Robinow bid to takeover Rea Vipingo. The pair already controls 57.04 per cent of the listed sisal firm.

The brothers have offered to buy out other shareholders of the Nairobi Securities Exchange-listed company at Sh70 per share plus a conditional bonus of up to Sh15 apiece from future disposal of the firm’s land.

However, Centum which moved to the Capital Markets Tribunal, is seeking a declaration that the offer by Rea Trading violates Kenya’s takeover rules.