Seaboard upbeat on Unga buyout plans

American conglomerate Seaboard has expressed confidence that its offer to buy the minority shares in Unga Group will result in it achieving a sufficient level of support from shareholders.

The Delaware based firm has offered Sh40 a share to buy out the minority shareholders, with the offer set to close on June 13.

Seaboard international business development vice president Hennie Combrink said there already has been good support from shareholders urging more to take up the offer.

“Our offer price offers an attractive value proposition for minority shareholders and offers them liquidity, but of course Seaboard respects that not every shareholder has to accept this offer,” Mr Combrink said.

Through the buyout, Seaboard will have a 49 percent stake in the firm up from 2.92 percent currently.

Upon successful acquisition, Seaboard plans to delist Unga from the Nairobi Securities Exchange (NSE), paving the way for the company’s future as a privately held firm.

Mr Combrink said Seaboard plans to grow Unga with an eye on growing its market share in the agribusiness sector.

“Our footprint in Kenya and our interest in Unga is in line with our long-term commitment to sustainably invest in the continent’s food and nutrition industry,” he said.

Report by Nancy Wangeci