Express Kenya shareholders have sanctioned a proposed move by the firm to up the stake of its CEO Hector Diniz in the company in an effort to cut back on Ksh. 80 million arrears owed to two of Mr. Diniz’s companies by the clearing, forwarding and logistics firm.
The move will be realized by transforming Ksh. 42 million and Ksh. 38 million that is respectively owed to Airport Trade Centre Ltd (ATCL) and Diniz Holdings Ltd into shares.
The new shares represent a 10 per cent stake in the company and it will increase Mr. Diniz’s overall stake to 71.64 per cent.
According to a news report by the Business Daily, the decision was reached after all 68 stakeholders in the company unanimously voted to approve the move during the firm’s Annual General Meeting (AGM) that was hosted in Nairobi on Thursday.
“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,” said the firm in a regulatory notice yesterday.
This is however not the first time Mr. Diniz has tabled an offer to the firm’s stakeholders in an effort to increase his stake in the company. Business Daily similarly reports that the Express Kenya CEO failed in a bid in 2018 to acquire 38.36 per cent equity held by lesser shareholders.
His offer was rejected then by a section of the shareholders who felt that Mr. Diniz’s valuation of the stock was much less than its real value. The new transaction had earlier been cleared by the Capital Markets Authority (CMA) in May.