Rea Vipingo could delist from the bourse by July

Rea Vipingo could delist from the Nairobi Securities Exchange as early as July after the majority shareholder received regulatory approval to buyout the other investors.

REA Trading received the approval last week following an out-of-court settlement with investment firm Centum.

The approval by the Capital Markets Authority paves the way for REA Trading, which already owns 57 per cent of Rea Vipingo, to proceed with their offer of Sh85 per share that had resulted in suspension of trading at the bourse.

The regulator had been forced to halt the buyout  deal after Centum moved to court accusing two British brothers who own REA Trading of abusing takeover rules in their attempt to win the deal.

ADDITIONAL CAPITAL

REA Trading now pins its hopes on an extra ordinary general meeting planned for April 28, to conclude the buyout.

“We hope that other shareholders will support our bid,” said Mr Richard Robinow, one of the two British brothers through a statement.

Centum has promised to rally other shareholders into approving REA’s bid as part of the out-of-court settlement.

The court deal would see Centum acquire 10,546 acres of prime Rea Vipingo land for Sh2 billion besides receiving a payout for its 0.49 per cent shareholding in the firm.

The two British brothers said they intend to diversify the business through additional capital.

They had set 25 per cent acceptance by shareholders as the threshold for proceeding with the buyout.

Once shareholders accept the deal, the buyout terms will be paid by July 17, after which the shares would be transferred to Rea Trading, completing the delisting.

“It would be easier to put in additional capital and take greater risks if the group’s operations are privately held,” read their statement.

The Rea Vipingo buyout has stalled for more than a year, with the two parties engaging in bitter wars and litigation at the High Court and the markets regulator’s tribunal.