Africa Mega Agriculture Center (AMAC) Limited has proposed to acquire 84.42 percent of the total issued share capital of Kenya Orchards Limited (KOL), an agricultural company listed on the Nairobi Securities Exchange (NSE).
The deal will be done via private Transaction with 10,863,537 shares if the main shareholders of KOL choose to divest.AMAC is an agribusiness company specialized in farming equipment leasing, agro-processing, storage solutions, co-farming, market facilitation among others. According to a statement by KOL, AMAC has no intention of staging a take-over to acquire all the voting shares in KOL and will remain listed on the Nairobi securities exchange. “In its Notice of Intention, AMAC, a strategic investor, notes that it plans to diversify KOL’s business line in order to improve KOL’s financial performance while leveraging on the strong household brand and long heritage of KOL,” read a statement by KOL. The transaction is subject to regulatory approvals.
Kenya Orchards saw an 8.1% drop in profit after tax in the financial year ending December 2023 to KSh 1.77 million from KSh 1.92 million a year prior, on the back of a tough operating environment. The counter closed the previous trading session at KSh 19.50.
