A businessman has rejected a Sh90 million offer from tycoon Peter Munga to settle a share purchase dispute that is the subject of a six-year court battle.
Joseph Muturi Kamau wants to be paid Sh150 million for three million TransCentury #ticker:TCL shares he offered Mr Munga to help the businessman offset an Equity Bank loan.
Mr Kamau says he had deposited the shares in a holding account at Equity Bank #ticker:EQTY as security for a Sh40 million loan he took from the bank but in 2011 struck a deal with Mr Munga to buy the shares at a price of Sh50 each.
But Mr Munga accuses Mr Kamau of dumping the shares on him on knowledge that TransCentury was a troubled firm and that the stock would depreciate at the Nairobi bourse.
The tycoon wants the share spat settled out of court on grounds that he and Mr Kamau are long-time friends and have had business dealings together.
“One may be tempted to read a case of one party dumping the shares on the other without making some known pertinent information that TransCentury, the benefactor of these shares, was heading for a meltdown as is now public knowledge,” says Mr Munga through his lawyers C.N. Kihara Advocates.
“Hence, the issues of breach of the fiduciary duty owed to our client and material non-disclosure could be played if the dispute runs the full course, which we consider undesirable.”
Mr Munga says he is willing to take a loss and offer Mr Kamau Sh30 for each share, which is premium based on its current share price of Sh7.80.
TransCentury listed via introduction at a price of Sh50 a share in 2011.
Mr Kamau has rejected Mr Munga’s offer and wants to be paid Sh50 for each share on grounds that they were bought on the “willing buyer, willing seller basis.”