Unga seeks shareholders nod for fish feed joint venture

Unga Group #UNGA is seeking shareholder approval to transfer part of the assets in two of its subsidiaries to joint ventures as it moves to seal the deal with Netherlands based feeds company Nutreco International.

After the transfer, the company says its two subsidiaries — Unga Farm Care and Unga Millers — will then own the new joint ventures on a 50/50 basis with Nutreco International B.V.

In the deal, Nutreco and Unga Farm Care will invest in and establish an aquafeed joint venture in Kenya as it targets to get a bigger share of the aquatic food market at a time when Kenya has increased focus on the blue economy.

The multinational and Unga Millers will also form an animal feed and nutrition joint venture in Uganda.

The human and animal feed manufacturer said Unga Farmcare, the company’s aquafeed business represents a small part of the company portfolio and will continue operations without change despite the joint venture.

The joint venture will see Unga Millers, the Uganda subsidiary transfer animal feeds, nutrition business and certain assets to the joint venture company.

“Following the completion of the conditional investment agreements that were entered to between Nutreco International B.V. and each of Unga Farmcare and Unga Millers…The shareholders are requested to ratify the following resolutions as an ordinary resolution,” the firm said in a notice in the media.

Unga Group expects to get Sh284.5 million from the transaction together with the sale of its bakery business.

The company recently reached an agreement to sell Ennsvalley Bakery to BigCold besides signing deals to transfer part of the assets of Unga Farm Care and Unga Millers to joint ventures that the subsidiaries will own on a 50/50 basis with Nutreco International B.V.

The human and animal feed manufacturer has disclosed that it has Sh284.5 million worth of assets held for sale, referring to the proceeds it expects from the transactions.