Delta International FZE, an infrastructural and industrial conglomerate operating across the East African region, is set to acquire an 84 percent majority stake at Nairobi Business Ventures (NBV) for KSh83 million.
Shares of the firm are currently suspended from trading at Nairobi Securities Exchange for one month to allow the conclusion of the transaction.
“Allot and issue up to a maximum of 415,000,000 ordinary shares of KES 0.50 each in the Company (“New Shares”) to Delta International FZE, subject to payment by Delta International FZE of the aggregate subscription price of KES 83 million (being KES 0.20 per New Share), on completion of the proposed investment in the Company by Delta International FZE,” reads part of a notice to the shareholders ahead of NBV’s virtual Annual General Meeting scheduled for 6 th November 2020.
Delta International incorporated in the United Arab Emirates is owned by Haresh Vrajlal Damodardas Soni. Its regional subsidiaries include Delta Holdings Kenya (real estate), Shreeji Glass Uganda (chemical manufacturing) and Shreeji Chemicals Kenya.
Consequently, if shareholders approve the transaction, the local shoe and leather accessories retail chain will move into the industrial production of cement.
“Delta International has considered entry into capital markets as a strategic move to maximise its expansion and diversification plans in Africa,” the shoe retailer said in a circular to shareholders.
“Once acquired by Delta, NBV shall commence importation of clinker (raw material for cement manufacturing) and progress towards clinker and cement manufacturing with an annual capacity of one million tonnes per annum,” said the circular to NBV’s shareholders.
NBV was incorporated and registered in Kenya in March 2012.