Shoe firm NBV gets green light to move into new ventures
MONEY & MARKET
By Macharia Kamau
| September 24th 2021
Nairobi Business Ventures (NBV) has received shareholders’ nod to diversify into new business lines, including cement manufacturing as well as vehicle and aircraft repairs.
The company expects the new business lines to enable it to grow revenues and return to profitability following the collapse of its shoe business. The company started out as a leather products retail chain, operating under the brand name K-Shoe but exited the retail business amid losses that saw it close down stores. The shareholders at an annual general meeting Wednesday gave the go-ahead to conclude proposed transactions with owners of Delta Cement Shreeji Enterprises.
NBV late last year brought on board Delta International FZE, which deals in chemicals, transport and logistics, as a strategic investor after the cement firm acquired an 84 per cent majority stake worth Sh83 million. NBV said shareholders gave the go-ahead to issue up to 442.5 million ordinary shares priced at Sh4 each to the shareholder of Delta Cement Ltd. This is subject to the transfer of 100 per cent of the issued share capital in Delta Cement to the company valued at Sh1.77 billion.
Shareholders also approved the buyout of Delta Auto Mobile, a heavy commercial vehicle maintenance firm. They also approved the acquisition of Aviation Management Solutions Ltd (AMSL) and Air Direct, both in the business of aircraft maintenance.
NBV expects the cement plant to be a significant investment. Cement production has in the recent past become a key sector in the economy, growing 11.8 per cent last year on the back of government spending on infrastructure, a trend expected to be sustained in the coming years. The firm has already started laying ground to start construction of the cement factory that will be located in Mavoko in Machakos County through Delta Cement.
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