An American firm ready to face the shareholders of Unga

The Delaware-based conglomerate Seaboard Corporation has renewed its grain withdrawal offer Unga Group #ticker: UNGA Nairobi Securities Exchange (NSE) #ticker: NSE's recent failure to take control of the Kenyan firm, colliding it with minority investors who rejected the offer.

Seaboard, together with the Philip Ndegwa family who holds a 50.93% stake in Unga, got shareholder support

The US firm had offered to buy Unga at the price of Sh40 per share

The 69.9 percent support was, however, less than the required 75 percent minimum for Miller Private, setting the stage for the latest offer.

Seaboard now says that he has waived this threshold, and will proceed to buy the 12.2 million shares that were offered.

The US company still says that it will call an extraordinary general meeting and ask for participation to vote for the miller's striking – privatizing it.

Such a resolution can however be blocked by investors with a combined property of at least 10 percent.

"It remains Seaboard's intention to proceed with its proposal to seek a write-off from the Nairobi Securities Exchange Corporation at an Extraordinary General Meeting that will be convened in due course," said Seaboard.

Kenya Securities Law states that a delisting resolution may be pbaded by a majority at a meeting where shareholders with a combined interest of at least 75 per cent are represented in person or by proxy

Such a resolution may be rescinded, however, if investors with a voting interest of 10 per cent or more vote against.] "A security considered by the exchange as eligible for continuous listing may not be withdrawn from circulation. list at the request or at the request of the issuer, unless the proposed withdrawal of registration is approved by the securityholders. t a meeting in which at least 75% of these securityholders are represented, without opposing the proposed withdrawal of at least ten per cent of the security holders ", indicate the rules for delisting from the NSE. If the write-off is successful, Unga will become a private company and the remaining minority shareholders will lose the liquidity and price discovery mechanism offered by a public registration.

Seaboard, who wants to increase its stake in Unga, could still buy them

The minority shareholders of Unga who have accepted Seaboard's offer will receive a total of 486 million shillings since Thursday. The miller has begun the transfer of 12.2 million shares to Seaboard, which will bring the direct participation of the multinational in Unga Group to 18.97%.

Seaboard already had a 2.92% stake in Unga before making its bid. The multinational holds a 35% separate interest in Unga Holdings – the investment vehicle by which the miller owns its operating units, including Unga Farm Care East Africa.

Investors who rejected the Sh40 per share offer argued that the price represented the undervaluation of the company, which was valued at $ 67.19 per share by an independent advisor.

The Unga board of directors approved the offer, taking the lower valuation of several presented by Faida Investment Bank, which she hired as an independent financial advisor (IFA ).