The offer was to close on Wednesday but has been pushed to June 28.
The miller’s shares, which were also to be suspended on Wednesday, have been allowed to continue trading on the Nairobi Securities Exchange (NSE) until the new offer closure date.
Results of the offer to be announced on July 20, 2018
Minority shareholders of Unga Group have been given 10 more days to consider a Sh40 per share buyout offer from Delaware-based conglomerate Seaboard Corporation.
The extension is a signal that the multinational may not have amassed the minimum acceptances amounting to a 75 per cent stake needed for the transaction to proceed.
The offer was to close on Wednesday but has been pushed to June 28.
The miller’s shares, which were also to be suspended on Wednesday, have been allowed to continue trading on the Nairobi Securities Exchange (NSE) #NSE until the new offer closure date.
“In order to allow more time for shareholders to consider the Seaboard offer and respond accordingly, Seaboard has obtained the approval of the Capital Markets Authority to extend the closing date by 10 working days,” the multinational said in a statement.
Seaboard offer
A section of Unga’s significant shareholders have termed Seaboard’s offer of Sh40 per share as inadequate, citing the value of the company’s assets.
The miller’s board of directors have however endorsed the buyout, saying it offers a significant premium to Unga’s historical share price.
The directors rejected the higher valuation of Sh67.19 per share, saying the company will have to be liquidated to unlock the value.
Seaboard, which already owns a 2.92 per cent stake in the miller, needs shareholders owning at least 21.1 per cent to tender their shares for the offer to proceed.
It has already secured the support of the Philip Ndegwa family which has a controlling 50.93 per cent equity, with the two parties working in concert to take the miller private.
Some of the significant minority interests in Unga include Rakesh Gadani with a stake of 4.64 per cent, Moses Thara (3.71 per cent), BID Portfolio Management (3.16 per cent) and Broadway Bakery (1.52 per cent).
Seaboard says Unga suffers several disadvantages from its status as a publicly traded company, including disclosure of competitive information, costs of regulatory compliance and an ownership structure that discourages the entry of new strategic investors. If successful, the buyout should be completed by August 2.
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