CEO's buy offer for Express Kenya flops :: Kenya

The shareholders of Express Kenya refused to sell their stake to the general manager, Hector Diniz. This means that the company will remain listed on the Nairobi Securities Exchange.

Less than 10% of the shareholders of the transport and logistics company accepted the buyback, which was far from the required threshold of 75%.

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Despite holding significant shares in person and through his Etcoville company (61.64 percent), Mr. Diniz could not leave with the company who owns the main property on Likoni Road.

He had sought to buy back 38.3 percent of the common shares that were not owned by his affiliates, but ended up getting only 9.78 percent approved.
[TRADUCTION] "Although the offer has not been successful, Diniz Holdings would like to thank all the shareholders of Express Kenya who have supported the offer, but it will not be removed from the Nairobi Securities Exchange ". .

This comes at a time when the US firm Seaboard Limited is also expected to announce the result of an Unga group buy offer on Friday.

Seaboard got a 10 day extension due to the low adoption of the offer, with the company blaming on a mix of physical and postal addresses.

Victus Limited, which holds 38.5 million shares – 50.93% of the sucker – supports the operation.

The purchase offer of Express Kenya has eaten up to half of its year, having been in the red over the last three years where it has recorded losses consecutive.

The company experienced headwinds after losing its main logistics business with East Africa Breweries four years ago, forcing it to lease its fleet and equipment.

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To maintain itself, Express Kenya has set up a real estate business on its 16 main property acres, but despite the construction of 224 residential homes on 3.5 acres, the company Sh2 billion failed to take off.

In its 2015 annual report, the company admitted to being hit by roadblocks.

"There have been twists and turns that have resulted in mbadive delays in implementation as well as a delay in the timeframe for running the company's cash flow," he said. Diniz.