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Rea Vipingo bid takes a new turn

February 2, 2014


The battle to buy out sisal producer Rea Vipingo took a new turn as one of the three bidders, Www.Bid Investments, moved its offer into a new investment vehicle, bringing in additional partners but retaining its takeover price. In a notice to the market regulator, CMA on January 30 , Bid Investments said its buyout offer at Sh55 per share will be replaced with that of the new investment company called Vania Investment Pool Limited (VIP), at the same price. "Www. Bid Investment Company is a subscriber shareholder in a new investment vehicle, VIP, which was formed for purposes of making a competing takeover bid in Rea Vipingo. Www. Bid Investment has discontinued the takeover bid for Rea Vipingo as a consequence of the bid by VIP," said the statement. Vania is seeking to buy out all Rea Vipingo shares that are not held through , which owns 836,900 shares. The bid values Rea Vipingo at Sh3.3 billion. The bidding war for Rea Vipingo was started when the company's biggest shareholder, Rea Trading Company (REAT), on November 13, 2013 made an offer to buy out all the 25.77 million shares it does not hold at a price of Sh40, thus valuing Rea Vipingo at Sh2.4 billion. READ: Rea Vipingo battle hots up with entry of third bidder

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Source: Business Daily (Kenya)

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