Africa Mega Agriculture Center (AMAC) Limited has announced plans 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 acquisition will take place through a private transaction involving 10,863,537 shares, contingent upon the main shareholders of KOL deciding to divest. AMAC, an agribusiness company, specializes in farming equipment leasing, agro-processing, storage solutions, co-farming, and market facilitation, among other services.
In a statement from KOL, it was clarified that AMAC has no plans to launch a full takeover to acquire all voting shares in KOL, and KOL 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 to improve KOL’s financial performance while leveraging the strong household brand and long heritage of KOL,” the statement read. The transaction is subject to regulatory approvals.
Kenya Orchards reported an 8.1% decline in profit after tax for the financial year ending December 2023, dropping to KSh 1.77 million from KSh 1.92 million the previous year, due to a challenging operating environment. The company’s stock closed the last trading session at KSh 19.50.
