James Mworia, chief executive officer, Centum Investments. Centum has made a Sh2.98 billion counter offer for Rea Vipingo Plantations, sparking off a bidding war against two British brothers. Photo/FILE NATION MEDIA GROUP
What you need to know:
Shares of investment firm Centum rose by 7.81 per cent on Wednesday, the first trading session after it made a counter-offer on Rea Vipingo
Its shares closed the day at Sh34.50 up from Sh32 on Tuesday
Centum offered to pay shareholders up to Sh50 per share compared to the Sh40 pitch made by London-based REA Trading (REAT) Limited, owned by British nationals Richard Robinow and Jeremy Robinow
Shares of investment firm Centum rose by 7.81 per cent on Wednesday, the first trading session after it made a counter-offer on Rea Vipingo.
The firm’s share price closed the day at Sh34.50 up from Sh32 on Tuesday following its counter-offer for agricultural firm Rea Vipingo, which was higher than that of its rival leaving it with a better chance to close a deal.
Centum offered to pay shareholders up to Sh50 per share compared to the Sh40 pitch made by London-based REA Trading (REAT) Limited, owned by British nationals Richard Robinow and Jeremy Robinow.
Centum has said that it intends to keep the agricultural firm as a Nairobi Securities Exchange (NSE) listed firm if its deal is accepted.
This is an early indication of the divergent strategy from that of the Robinow brothers who want to take the company off the bourse.
The Sh50 per share offer values Rea Vipingo at Sh3 billion, which is Sh600 million more than the valuation that the Robinow deal had attached to the sisal producer.
REAT, which is owned by the two British nationals already holds 20.57 per cent or 12.34 million shares of the agricultural firm.
It is also the beneficial owner of another 36.47 per cent or 21.88 million shares which are under London Stock Exchange listed Rea Holdings plc.
If Centum succeeds in getting acceptances of its offer from shareholders representing more than 25 per cent of Rea Vipingo’s issued shares, then it will scuttle the British duo’s bid to acquire and de-list the company since they will fall short of the minimum 75 per cent threshold required for the transaction to sail through.
REAT on November 14 offered to take over all the shares of Rea Vipingo Plantations which it does not already own.
Centum currently holds 296,500 shares or 0.49 per cent of Rea Vipingo, has disclosed that it intends to buy all the shares of the agricultural company which it does not already own.
This means that it is prepared to spend at least Sh2.98 billion if the counter-offer is accepted in its entirety.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
