Express Kenya may be delisted from NSE over new takeover bid
7 Dec 2017 19:00
Daniz Holdings, which owns up to 61.64 per cent stake in Express Kenya Limited, has applied for the full ownership of the listed forwarding and clearing firm. In a takeover notice dated December 1, the firm declared its intention to buy the remaining 38.36 per cent of the ordinary shares in Express Kenya for cash consideration. Should the take-over be successful, it is the intention of Diniz Holdings to delist Express Kenya from the Nairobi Securities Exchange. ''The ordinary shares of Express Kenya will be acquired free from all liens, charges, encumbrances and other interests and together with all rights now and hereafter attaching thereto including the right to receive all dividends and distributions hereafter declared, made or paid,'' the notice read in part. The take-over offer, which will be set out in an offer document in compliance with the Capital Market Authority statutory on take overs and mergers, will see Daniz Holdings buy 13,582,592 shares at a take-over offer price of Sh5 per share, translating to Sh74,704, 256. Diniz Holdings Limited and Hector Robert Diniz indirectly own 21,392,898 shares via Etcoville Holdings Limited and 428,300 via Hector Robert Diniz which amounts to 21,821,198 shares or 61.64 per cent of the issued share capital. Etcoville Holdings Limited, Etcoville Investments Limited and Hector Robert Diniz are acting in concert with Diniz Holdings, the notice said. Following the takeover announcement, the Nairobi Securities Exchange (NSE) was forced to suspend Express Kenya trading yesterday. “The suspension was issued by the Capital Markets Authority pursuant to Regulation 22(2) (b) of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002 and takes effect from December 4, 2017 until the authority otherwise directs,” NSE said in a statement. Express Kenya's 35,403,790 shares had a capital value of at least Sh141 million on the Nairobi Securities Exchange (NSE) with its share trading at Sh3.75 before being suspended. Express Kenya Limited provides clearing and forwarding services for air and sea, as well as warehousing and logistics services in Kenya. It operates through three segments: clearing and forwarding, warehousing and real estate.