Mumias Sugar, Deacons East Africa Shares to Remain Suspended from Nairobi Bourse

Mumias Sugar, Deacons East Africa Shares to Remain Suspended from Nairobi Bourse

Troubled sugar miller, Mumias Sugar Company and clothing retailer Deacons East Africa trading of its shares on the Nairobi Securities Exchange (NSE) will remain suspended.

In a notice to shareholders and the public Thursday morning, NSE says the move by the Capital Markets Authority (CMA) follows the placement of the listed sugar company under receivership following a Deed of appointment of Receiver between KCB Group Ponangilpalli Venkata Ramano Rao on September 20, 2019.

“The extension of suspension from trading of the company’s shares will remain in force until further notice,” said the NSE.

Consequently, for Deacons East Africa, it follows the appointment of Joint Administrators by the Board to run its business. The fashion retailer was declared insolvent on November 19, 2018.

Currently, the miller has been involved in ethanol production since February.

The miller posted a net loss of KSh.15.1 billion in the financial year 2018/2019 against compared to the previous year’s loss of KSh.6.8 billion.

It owes the Kenya Revenue Authority KSh 10 million while the Kenya Commercial Bank (KCB Group) which appointed a receiver-manager is owed KSh 20 billion.

On the other hand, in May 2019, Deacons announced the sale of its business and assets through Dyer & Blair, an investment firm.

Deacons East Africa owns 4U2, FNF, Adidas and Bossini clothing and shoe stores in Nairobi and Kigali, Rwanda.

However, Dyer & Blair Investment Bank, the transaction adviser, is yet to get investors interested in Deacons.