× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

High Court suspends REA Vipingo takeover process

By By James Anyanzwa | April 11th 2014

By James Anyanzwa

The High Court has suspended the proposed takeover of the agricultural firm REA Vipingo Plantations Ltd (RVPL), pending investigations into allegations of irregularities, which have marred the entire process.

Justice Weldon Korir yesterday stopped the Capital Markets Authority (CMA) from proceeding with the takeover process until the matter is heard and determined on April 16.

Korir issued the orders following an urgent application to stop the process by one of the bidders, Vania Investment Pool (VIP) Ltd, whose amended offer of Sh80 per share was rejected by CMA on the grounds that the set deadline of February 28 had expired. According to a statement sent to newsrooms by Vania Investment Pool after the court ruling, the market regulator cannot proceed with the takeover timetable it had released in February until the matter is heard and determined.

“The CMA has this morning been stopped from going ahead with approving bid documents presented to it in connection with the takeover of REA Vipingo Plantations Limited,” the firm said. Justice Korir, according to the statement, said the matters before him were weighty and urgent and directed that the parties to the case be heard before Him on April 16, 2014.

 VIP, through its lawyer Paul Ogunde of Walker Kontos Advocates, said the deadline imposed by CMA on the bidding process denied shareholders an opportunity to derive maximum returns on their investment. Ogunde said CMA acted against its own published takeover regulations.

Ogunde argued that CMA acted contrary to own regulations without reasonable cause and without the approval of the Cabinet Secretary for the National Treasury, which was contrary to the CMA Act.

CMA rejected VIP’s amended offer of Sh80 per share to REA Vipingo Plantation shareholders, prompting the group of investors to go to court on Tuesday April 8 this year.

Share this story
New GDP formula shifts Kenya to middle-income status in May
The proposal to launch a new formula for calculating the market value of goods and services, known as gross domestic product, in Kenya may create an illusion that could see the country’s debt levels go up.
Dog walking becomes the newest hustle in town
Dog walking is now a status symbol. Owning a pet is cool. I nowadays meet lots of Kenyans and foreigners walking their dogs and some running.