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Author: PATRICK ALUSHULA
According to this Author
Miller investors who hold a total of 12.2 million shares or a 16.05 percent stake have deposited their shares and will receive a total of 486 million Sh.
Seaboard n & # 39, did not receive shareholder support with a minimum stake of 75 per cent, but decided to lift this threshold, allowing it to resume the offered shares.
"In accordance with the terms of the Seaboard offer, Seaboard has decided to raise the minimum threshold of acceptance and intends to complete the acquisition of shares for which acceptances have been received ", the multinational indicated in a notice.
"All other terms of the Seaboard Offer have been fulfilled and the Offer has become unconditional in all respects and as a result, all Unga Group Shareholders who have accepted the Seaboard Offer will receive the cash purchase price of Sh40. "
Unga began the transfer of shares of investors who accepted the offer to Seaboard, an action that will increase the participation of the multinational In the firm listed on the Nairobi Stock Exchange, the rate was 18.97%.
Seaboard already had a 2.92% stake in Unga before making its bid. The multinational also 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.
The multinational is working with the Philip Ndegwa family – who has a 50.93% stake in the deal. A minority shareholder rejected the Sh40 offer per share by undervaluing the company whose value was estimated at 67.19 shillings per share by an independent advisor.
Unga's board of directors approved Seaboard's offer, taking the lower valuation of several that was presented to it by Faida Investment Bank, which it hired as Independent Financial Advisor (IFA).
Faida said in his report that the share could be anywhere between Sh67.19, Sh39.82 and Sh39.01 when they are valued based on liquidation, cash flow and peer values, respectively.
"The board recommends that shareholders accept the price offered as representing a fair return on investment Under the current circumstances," the board of Unga said in its recommendation.
"While the board recognizes that the Sh40 offer is at the lower end of the IFA valuation range, the board finds it consistent with the valuations of the company. # 658, "Seaboard said that the offer accounted for a significant premium for the price of the stock." Unga who historically traded below his ook value. The miller has low net profit margins of less than five percent, but has accumulated cash reserves through prudent dividend payments.
