Seaboard Corp confident of sealing deal for Kenya's Unga

Seaboard

11/06/2018 12:26

NAIROBI, June 11 (Reuters) - Seaboard Corporation  SEB.A  is
confident of buying out three quarters of minority shareholders
in Kenyan agro-processor Unga Group  UNGA.NR  to allow it to
eventually take the company private, Seaboard said on Monday. 
    The U.S. firm offered in February to buy the 46.15 percent
of Unga's shares that are held by minority shareholders and
listed on the Nairobi bourse. It needs to purchase three
quarters of that total to be able to take Unga private. 
    The rest of the shares are owned by a local group of
investors via a vehicle called Victus Ltd, which supports
Seaboard's goal of buying out the minority shareholders and
eventually delisting the firm.
    Market participants said Unga, whose businesses range from
wheat and maize milling to baking and animal nutrition products,
faced growing competition from unlisted companies, hence the
desire to also take it private and operate on a similar footing.
 
    Seaboard has offered to pay 40 shillings ($0.3970) per
share, representing a 31.75 percent premium on the shares'
250-day weighted average price. Unga's current market
capitalisation is around 3 billion shillings ($30 million),
according to Reuters data.
    The offer closes on June 13.
    "Our interest in Unga Plc is an effort to deepen our
presence across targeted markets in sub-Saharan Africa," said
Hennie Combrink, Seaboard's vice president of international
business development and finance.
    "Africa is part of Seaboard's core business model. We have
been here since the 60’s and the continent remains an important
part of our business portfolio."
    ($1 = 100.7500 Kenyan shillings)

 (Reporting by Duncan Miriri; Editing by Mark Potter)
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