Africa Mega Agriculture Centre (AMAC) Limited has announced a move to acquire 84.42 percent of Kenya Orchards Limited (KOL) 's total share capital.

 The agribusiness company specializing in leasing farming equipment, agro-processing, and storage solutions will acquire up to 10.86 million ordinary shares in KOL from its major shareholders.

This includes Westpac Holdings Limited, Hansa Dinesh Chandra Shah, Thakarshi Keshav, and Vipul Thakarshi Patel through a private transaction.

Further, AMAC said that it plans to diversify KOL’s business line to strategically improve its financial performance while leveraging its strong household brand.

The Capital Markets Authority (CMA) announced that if the proposed acquisition is successfully completed, AMAC will directly control up to 84.42 percent of KOL's issued share capital.

“Shareholders of Kenya Orchards Limited are advised that KOL was on June 14 2024 served with a notice of intention by Africa Mega Agriculture Centre Limited (AMAC) to acquire up to 10,863,537 ordinary shares in KOL from the shareholders of KOL by way of a private transaction.”

However, the company stated that it would not request a takeover offer to acquire all the voting shares in KOL or delist the company from the Nairobi Securities Exchange after fully acquiring its lion stakes.

“AMAC has stated in its notice of Intention that it does not intend to make a take-over offer to acquire all the voting shares in KOL and that there is no intention to delist KOL from the Nairobi Securities Exchange following completion of the Transaction,” CMA added.

The CMA warned that the acquisition may have a material effect on the price of the KOL securities.

As a result, CMA has advised shareholders of KOL and the public to exercise caution when dealing in KOL’s shares on the Nairobi Securities Exchange.

“ Further announcements will be made in accordance with regulatory requirements as and when there are any material developments,” it added.