US firm offers Sh40 a share to minority shareholders in a deal that will eventually see miller delist from the NSE.
Trading in Unga Group shares was yesterday suspended at the Nairobi Securities Exchange as buyout talks with an American firm continued.
Delaware-based Seaboard Corporation has offered to buy out minority shareholders at Sh40 a share.
The amount is premium for the small shareholders considering the shares of the firm owned by the family of Phillip Ndegwa, a former Central Bank governor, were trading at Sh29.5 before their suspension yesterday.
“This offer price values Unga at Sh3 billion,” commented Apex Africa Capital on the impending takeover.
“From the buyout, minority shareholders will indeed make money since the offer price is at a premium to the current share price (36.8 per cent).
The firm said the offer was, however, subject to the price at which each shareholder entered the market.
Some of the small shareholders include Moses Thara, Rakesh Gadani, Alimohamed Adam, Broadway Bakery, and Bid Portfolio Management Ltd, according to the company’s 2016 annual report.
Unga will delist once the American multinational increases its shareholding from 2.92 per cent to 49 per cent by the end of the year, making it a partner with the Ndegwa family’s Victus Ltd, which owns 50.93 per cent of the firm.
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The deal will be concluded by the end of September upon approval by the Capital Markets Authority.
In 2002, the two firms created a holding group in which Unga holds a 65 per cent stake and Seabord 35 per cent. The two firms use this vehicle to operate subsidiaries.