Kakuzi Ltd., a Kenyan agricultural company, dropped the most in almost a month after announcing plans to sell its 50.5 percent shareholding in Siret Tea Co.
Shares retreated 0.7 percent to 75 shillings by 1:15 p.m. in Nairobi, the biggest decline since July 27.
Kakuzi will sell the stake to Siret Outgrowers Empowerment and Produce Co., a group of smallholder farmers, for an undisclosed amount. The transaction is expected to be completed on Aug. 31, the company said in a statement published in the Daily Nation newspaper.
“What we are seeing is a knee-jerk reaction from minority shareholders who are concerned about the transparency around the sale price,” Aly-Khan Satchu, chief executive officer of Nairobi-based investment company Rich Management Ltd., said in a phone interview today.
Minority shareholders could be concerned that Kakuzi may not have got a competitive price for the holding, Satchu said.