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Kenya Orchards changes name after 84pc stake sale
The parties said the deal would be done by way of a private transaction, and asset transfers to settle dues owed to the selling parties by the company.
Listed manufacturing firm Kenya Orchards Limited (KOL) has changed its name to Africa Mega Agricorp Plc, after the latter bought out the company’s majority shares, in a deal that was first disclosed in June last year.
The transaction saw Africa Mega Agricorp buy 84 percent of Kenya Orchards, equivalent to 10.86 million shares.
The shares on sale were held by Westpac Holdings Limited (34.28 percent), the company’s directors Thakarshi Keshav Patel (33.6 percent) and Vipul Thakarshi Patel (14.88 percent), and Hansa Dinesh Chandra Shah’s 1.65 percent.
The parties said the deal would be done by way of a private transaction, and asset transfers to settle dues owed to the selling parties by the company.
A notice published on Wednesday by Kenya Orchards on the name change, signalled that the buyout has been concluded, having received shareholder approval in an extra-ordinary general meeting in August 2024.
“Notice is hereby given that Kenya Orchards Limited has changed its name to Africa Mega Agricorp Plc, following due approval of shareholders and receipt of certificate of change of name issued by the Registrar of Companies dated December 16, 2024,” said Kenya Orchards in the notice.
At the time of the initial announcement in June, the Kenya Orchards share was trading at Sh19.50, which would have valued the transaction at Sh210 million.
The stock however appreciated sharply in the second half of the year to close December at Sh70 per share, through a series of thin trades—making it one the top gainers over the 12-month period with a share price appreciation of 259 percent.
Neither Kenya Orchards or Africa Mega Agricorp disclosed the settlement price of the transaction.
Going by the latest share price of Sh70, the stake is now valued at Sh760.4 million.
A circular by Kenya Orchards to its shareholders dated July 23 indicated that Africa Mega Agricorp would not extend the offer to the remaining shareholders, and would also not be seeking to delist Kenya Orchards once it acquired its desired stake.
The structure of the deal mirrored the sale of a 35 percent stake or 73.4 million shares of Eveready East Africa by East Africa Batteries Limited (linked to the late Naushad Merali) to Dubai based InvestAfrica FZCO in 2023.
That deal was also categorised as a private transaction, with the buyer also opting against buying out other shareholders or initiating a delisting of the company from the NSE.
