Rea Vipingo delisted from NSE

Friday September 18 2015

A Rea Vipingo sisal estate in Kilifi County. The High Court halted the takeover of REA Vipingo Plantations Ltd after one of the bidders for Africa’s biggest sisal producer challenged the validity of a rival offer. PHOTO/FILE

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 

BRIAN NGUGI
By BRIAN NGUGI
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Sisal grower Rea Vipingo Plantations has announced it is no longer listed on the Nairobi Securities Exchange (NSE) E effectIVE September 17.

The follows the successful takeover of the sisal grower by Britain registered REA Trading.

The Capital Markets Authority had earlier issued a green light for the delisting.

Earlier in May this year, the sisal grower was at the centre of a protracted takeover battle between Kenyan investment firm Centum Investment and the British majority owners REA Trading but the two sides later reached a sweetheart deal for the acquisition of the agricultural company.

REA Trading, which controls Rea Vipingo with a 57 percent stake initially made a takeover offer to acquire all issued ordinary shares of RVP on April 25 last year while Centum made a competing takeover offer on May 2 of the same year.

STALEMATE

The two parties entered into talks aimed at breaking the stalemate and came to a settlement agreement.

Centum acquired 9,646 acres of land in Vipingo at a price of Sh180,000 per acre and RVP’s subsidiary Vipingo Estates Limited which owns approximately 900 acres of land at a price of approximately Sh340 million while REA Trading would buy out the minority shareholders.

The six remaining agricultural stocks include Eaagads, Kapchorua Tea, Kakuzi, Limuru Tea, Sasini and Williamson Tea Kenya.

Rea Vipingo Friday asked its shareholders, investors and general public to take note of the delisting.

The firm owns other tracts of land in parts of Kenya and in neighbouring Tanzania.