Kenya Investor Challenges High-Court Ruling on REA Vipingo Offer

Vania Investment Pool Ltd., one of three Kenyan companies seeking to acquire REA Vipingo Ltd., said it’s challenging a High Court ruling that blocked its offer for the sisal producer.

The company, based in Nairobi, has asked the Court of Appeal to overturn an April 17 High Court ruling that upheld the Capital Market Authority’s rejection of Vania’s offer, director Dilesh Bid said in an interview on May 2. The regulator said Vania failed to meet a Feb. 28 deadline to submit its bid.

“We believe that shareholders are not getting the best price possible,” Bid said.

Vania is offering 80 shillings per share for REA Vipingo, which says it is Africa’s biggest producer of sisal, a fiber used to make rope and dartboards. Centum Investment Co., Kenya’s biggest publicly traded investment company, has bid 75 shillings a share for the company, while REA Trading Ltd., Rea Vipingo’s main shareholder, offered 70 shillings.

Before it's here, it's on the Bloomberg Terminal.