Africa Mega Agriculture Center (AMAC) Limited has proposed acquiring a controlling 84.42% stake in Kenya Orchards Limited (KOL), a publicly traded agricultural company on the Nairobi Securities Exchange (NSE).
The deal, if approved by KOL’s major shareholders, would involve a private transaction for 10,863,537 shares.
AMAC says it has no intention of delisting KOL, ensuring the company remains accessible to investors on the NSE.
Kenya Orchards manufactures and sells fruit and vegetable bottled and canned products for domestic consumption in Kenya.
The company also produces a range of spices and seasonings. Products in its bottled range include fruit jams, tomato paste, tomato sauce, maple syrup, mayonnaise, custard powder, white vinegar used as a meat tenderizer, and corn starch.
AMAC, an agribusiness specializing in equipment leasing, processing, storage, co-farming, and market facilitation, seeks to diversify KOL’s operations.
This move aims to improve KOL’s financial performance while capitalizing on its established brand recognition and long history.
Regulatory approval is required before the deal can proceed.
Additionally, Kenya Orchards reported an 8.1% decline in profit after tax for the year ending December 2023, dropping to KSh 1.77 million from KSh 1.92 million the previous year.
This decline was attributed to challenging market conditions.
