The High Court has stopped the sale or transfer of shares belonging to one of the shareholders of a troubled potato-processing firm based in Nyandarua.
While certifying the case as urgent, Justice Rachel Ngetich directed the parties to maintain status quo.
No shares belonging to Juanco Group will be sold off. Juanco Group, through Mr Ndung’u Mwithiga, moved to court seeking to bar African Agricultural Capital Fund from selling or transferring his shares in a bid to recover a Sh100 million loan advanced to Midlands limited.
Mr Mwithiga through his lawyer Gad Gathu argued that Midlands, African Agricultural Capital Fund and Primestar Holdings were seeking to sell the shares without even conducting a valuation to determine their open market value.
Mr Mwithiga told the court that African Agricultural Capital Fund, which is under Ugandan private equity firm Pearl Capital Partners wants to dispose of their shares to recover the loan. He told the court that he was part of the guarantors of the loan and as part of the deal, he pledged part of his shares in Midlands to act as a security.
However, the company failed to service the loan, inviting trouble. Mr Mwithiga, who is also the investment manager of Midlands, says he owns about 35 per cent of shares of the company.
Justice Ngetich directed the parties to maintain the status quo pending the hearing of the case on April 17.
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