Twist as Rea Vipingo suitor exits the stage
PHOTO | FILE A worker at a sisal plantation. The takeover battle for plantation firm Rea Vipingo has taken a new twist with Bid Investments now withdrawing its offer in favour of its subsidiary, Vania Investment Pool Limited.
What you need to know:
- Bid established the company for the purpose of making a competing tender for Rea. The offer price, however, still remains at Sh3.3 billion similar to what Bid itself had offered countering Centum’s Sh3 billion that was on the table.
- In the financial year ending September 2013, the sisal firm revalued its biological assets three-fold to Sh228 million from Sh87.6 million. This saw it post an after tax profit of Sh442 million in the period compared to Sh380 million in 2012.
The takeover battle for plantation firm Rea Vipingo has taken a new twist with Bid Investments now withdrawing its offer in favour of its subsidiary, Vania Investment Pool Limited.
Bid established the company for the purpose of making a competing tender for Rea. The offer price, however, still remains at Sh3.3 billion similar to what Bid itself had offered countering Centum’s Sh3 billion that was on the table.
“Bid Investment Company Limited is a subscriber shareholder in a new investment vehicle, Vania Investment Pool Limited, which was formed for the purpose of making a competing takeover bid in RVP,” Dilesh Bid, the firm’s representative said in a statement.
According to Musti Mamujee one of the minority shareholders in the land rich sisal firm, the company is worth Sh11 billion (translating to Sh200 per share).
“The shares are worth over Sh200 each,” he said adding that Vipingo is doing a valuation of its land.
In November last year, REA Trading Limited, the largest shareholder in the company, offered to buy Rea at Sh2.4 billion.
Thereafter, Centum tendered a competing offer of Sh3 billion, which was later countered by Bid’s and now, VIP’s offer of Sh3.3 billion.
REVALUE BIOLOGICAL ASSETS
In the financial year ending September 2013, the sisal firm revalued its biological assets three-fold to Sh228 million from Sh87.6 million. This saw it post an after tax profit of Sh442 million in the period compared to Sh380 million in 2012.
The management, however, warned that this does not represent cash in profit but a mere gain in its asset value, thus could not recommend dividend payment.
