AN EXPRESS KENYA TRUCK. FILE PHOTO | NMG
Trading on Express Kenya shares has resumed at the Nairobi Securities Exchange (NSE) after a three month suspension following a takeover bid by the firm’s CEO Hector Diniz.
The
NSE announced Tuesday in a notice that the suspension was lifted
effective March 5, although the notice was silent on how far the offer
has proceeded or the reason for the lifting of the suspension.
The
stock immediately rallied after resuming trading on Monday closing the
day 9.3 per cent up at Sh4.10. On Tuesday, it was up again by a near
maximum 9.8 per cent or 40 cents to Sh4.50 by midday.
“Notice
is hereby given on the lifting of the suspension in trading of Express
Kenya securities effective March 5, 2018. This follows the suspension of
trading effected on the security on December 4, 2017 to facilitate the
takeover of Express Kenya by Diniz Holdings Limited,” said the NSE in
the notice.
Diniz Holdings, an investment firm, has bid to acquire the 38.36
per cent stake held by other shareholders other than its affiliates for
Sh5.50 a share.
The share was trading at trading at
Sh3.70 when it was suspended on December 4, meaning the offer price
represented a 48.65 per cent premium for investors. This premium is
however likely to shrink now that the share is trading again with an
upward bias.
Express now becomes the second counter
that is trading actively at the bourse while under a takeover offer by
an existing shareholder, the other being Unga Holdings
where US-based shareholder Seaboard has mounted an offer to buy out other minority shareholders.
A
successful bid, subject to regulatory approvals and various conditions,
will result in delisting of the logistics firm from the NSE.
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