Express Kenya CEO disinterested in buyout bid

PHOTO/COURTESY: Kenyan Wallstreet

Express Kenya’ CEO Hector Robert Diniz has no interest in acquiring the logistics company despite the fact that he boosted his chances of hitting the minimum buyout target of 75 percent after acquiring extra shares in the company.

“Hector Robert Diniz does not intend to make a take-over offer,” Express Kenya said in a notice addressed to the Capital Markets Authority (CMA).

Express Kenya shareholders had earlier given a go-ahead to a proposed move by the firm to up the stake of Mr. Diniz in the company in an effort to cut back on Ksh. 80 million arrears owed to two of Mr. Hinz’s companies by the clearing, forwarding and logistics firm. The move was realized by transforming Ksh. 42 million and Ksh. 38 million that was respectively owed to Airport Trade Centre Ltd (ATCL) and Diniz Holdings Ltd into shares that translate to a 10 per cent stake in the company. This increased Mr. Diniz’s overall stake to 71.64 per cent which is just a few percentage points below the minimum buyout target of 75 per cent.

“The members present and in person and by proxy and eligible to vote unanimously by show of hands without any dissent passed a resolution to convert a debt of Sh42 million and Sh38 million owed by the company to Airport Trade Centre Limited and Diniz Holdings Limited respectively to equity,” Express Kenya said when shareholders sanctioned the conversion of debt into extra shares.

His disinterest in a takeover bid has similarly seen him exempted from a directive found in CMA’s Take-over and Mergers regulations that require an individual aiming to obtain a controlling stake in a listed firm to announce the offer through a press notice within 24 hours after the board of directors sanction the move.

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