Rea Vipingo owners face second year of dividend freeze
What you need to know:
Rea Vipingo shareholders face a second straight year of zero-dividend even as the stock remains frozen from trading at the Nairobi Securities Exchange.
Changes in the fair value of its sisal plants saw the firm’s net profit drop to Sh350.9 million from Sh444.81 million posted in 2013.
The share was suspended from trading in November 2013 by the Capital Markets Authority (CMA) following a takeover bid.
Directors of the sisal plantation did not recommend a payout despite the firm making improved operating profit for the year ended 30th September, 2014.
Changes in the fair value of its sisal plants saw the firm’s net profit drop to Sh350.9 million from Sh444.81 million posted in 2013. The whole profit has been put in the reserves.
The share was suspended from trading in November 2013 by the Capital Markets Authority (CMA) following a takeover bid.
“It is hoped that there will not be too much further delay in resolving the current situation,” said the directors who left the date of annual general meeting in abeyance.
London-based brothers, Richard and Jeremy Robinow’s through REA Trading Limited and Centum Investment are seeking to buy out other owners.
Quick resolution
Centum put an offer of Sh75 per share while, the Robinow brothers sought to buy the stock at Sh70.
REA Vipingo’s last trading price on NSE was Sh27.50.
The bid war has since ended in court and the CMA Tribunal and the management is banking on a quick resolution.
“Shareholders will be aware that the competing takeover situation that the company faced during early 2014 has resulted in the process being stayed by the High Court of Kenya by proceedings brought by one of the offerors, Centum Investment Company Limited,” said chairman Oliver Fowler promising owners updates if any.
Revenues marginally rose to Sh2.7 billion from Sh2.57 over the period which is a 5.1 per cent increase.
Analysts said future revenues are heavily reliant on sufficient rainfall, especially at its Dwa Estate in Makueni County where it grows sisal on 22,214.77 acres.
The listed agricultural company has other plantations in Vipingo (Kilifi) and Tanzania. Rea’s combined land holdings are about 70,000 acres.
The firm had 5,874 shareholders on the books when it was suspended.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
