- Advertisement -
   

Seaboard upbeat on Unga buyout

- Advertisement -

Seaboard Corporation is confident that its offer to buy the minority shares in Unga Plc with the objective of eventual delisting of Unga Plc from the Nairobi Securities Exchange (NSE) will be successful.

Seaboard, a global food, energy and transportation Fortune 500 company made a takeover offer for all the 46.15% issued ordinary shares of Unga Plc that are currently held by minority shareholders.

Seaboard has proposed an offer price of Ksh40 – which represents a premium of 31.75% to Ksh30.36 being the 250-day volume weighted average price of a share in Unga Plc as of the value date. The transaction offers minority shareholders a timely opportunity to realize the value of their shares in Unga Plc.

“We are delighted with the support for the offer so far and call on all minority shareholders to realize the value of their shares before the offer closes on Wednesday 13thJune, 2018,” Mr Hennie Combrink, Seaboard’s Vice President International Business Development and Finance said. “Our offer price offers an attractive value proposition for minority shareholders and offers them liquidity, but of course Seaboard respects that not every shareholder has to accept this offer.”

Notably, Seaboard is acting in concert with Victus Limited which has given an irrevocable undertaking to support the takeover offer as a concert party albeit that it will not increase its present shareholding. Once the transaction is concluded, Seaboard will seek to delist Unga Plc from the Nairobi Securities Exchange (NSE) to pave way for the company’s future as a privately held company.

“Our interest in Unga Plc is an effort to deepen our presence across targeted markets in sub-Saharan Africa.  Africa is part of Seaboard’s core business model. We have been here since the 60’s and the continent remains an important part of our business portfolio. The greater our footprint, the greater the ability to service markets through an extended value chain and logistic network. Our footprint in Kenya and our interest in Unga Plc is in line with our long-term commitment to sustainably invest in the continent’s food and nutrition industry,” said Mr. Combrink.

READ ALSO: COMPANIES WITH MOST GENDER-SENSITIVE BOARDS

Before the offer closes on Wednesday June 13th, 2018, minority shareholders who desire to take up Seaboard’s offer and realize the value of their shares must submit their original Form of Acceptance to their respective stock broker or to CBA Capital Limited, the Lead Transaction Advisor and Sponsoring Broker.

- Advertisement -
BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
- Advertisement -
Must Read
- Advertisement -
Related News
- Advertisement -
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments