Express Kenya set to exit NSE in July

Express Kenya may be out of the bourse by July 17 its shareholders agreed to delist it and offer controlling stake to CEO Hector Diniz.

The logistics firms which wanted to invest into real estate after a run of losses has slated a delisting Annual General Meeting on June 20 to ask shareholders to approve the delisting.

If they refuse the counter will be back on the trading floor for a second time this year after being suspended twice.

Initially, Express Kenya was suspended in December 4 but was returned to the trading floor on March 5. It will be suspended on June 28 awaiting the decision by the shareholders and if they turn down Diniz’s offer it will be reinstated on July 17.

Diniz offered to buy out ordinary shareholders as the real estate Sh5.50 for the shares that were trading at Sh3.75 with a total cap of Sh132.7 million in December as logistics firm Express Kenya prepared to exit the NSE.

The return of the stock on the market in March, however, caused a reprising shock as the stock rose from Sh4.10 to Sh4.50 where it stayed till the close of Wednesday trading.

Diniz, who owns shares in the company directly and through Etcoville Holdings Ltd, wanted to take over the firm once he gets 28.36 percent of the shareholding.