Kenya Orchards Limited (KOL) has officially changed its name to Africa Mega Agricorp Plc after the sale of an 84% stake to Africa Mega Agriculture Centre (AMAC). The acquisition, initially announced in June 2024, was finalized following shareholder approval at an extraordinary general meeting held in August 2024. The company confirmed the name change, stating that the approval process had been completed, and a certificate of change of name was issued by the Registrar of Companies on December 16, 2024.
The transaction involved the sale of 10.86 million shares previously owned by Westpac Holdings Ltd, which held a 34.28% stake, along with directors Thakarshi Keshav Patel (33.6%), Vipul Thakarshi Patel (14.88%), and Hansa Dinesh Chandra Shah (1.65%). The agreement was executed through a private transaction, which included asset transfers to settle outstanding dues.
At the time of the initial announcement, KOL shares were trading at KES 19.50 (US$0.15) per share, valuing the transaction at approximately KES 210 million (US$1.6 million). However, a sharp increase in stock value saw the share price rise to KES 70 (US$0.54) by the end of December 2024. While the final settlement price has not been disclosed, the latest valuation estimates the 84% stake to be worth approximately KES 760.4 million (US$5.88 million).
A circular sent to shareholders on July 23, 2024, confirmed that Africa Mega Agricorp Plc would not extend an offer to remaining shareholders and had no intention of delisting KOL from the stock exchange. The company, previously focused on the distribution of processed fruits, vegetables, and other food products, is now under AMAC's management. AMAC is a major agribusiness enterprise specializing in equipment leasing, agro-processing, storage solutions, and market facilitation. The acquisition marks a significant transition for the company, positioning it within a broader agricultural framework that extends beyond food distribution.
Source: Food Business Africa