Unga Group shareholders advised to exercise caution when dealing in its shares
Unga Group is advising its shareholders and any other investors to exercise caution when dealing in the company’s shares on the Nairobi Securities Exchange (NSE).
The cautionary announcement comes on the backdrop of miller’s plan to enter into joint venture agreements with the Dutch-based Nutreco, one of the world’s biggest animal nutrition and aquafeed companies.
In a statement, the company said Nutreco international and Unga farm care, a subsidiary of Unga Group, shall invest in and form a fifty-fifty joint venture company in Kenya.
They will then transfer their respective Kenya aquafeed businesses and certain production equipment to the Kenyan joint venture.
The firm further announced that Nutreco international and Unga millers, another Unga Group subsidiary, shall invest in and create a joint venture in Uganda and transfer all their respective Uganda animal feeds and nutrition businesses and certain assets to the newly created Ugandan joint venture company.
While Unga Group has not disclosed the value of the proposed deals, the firm says it will issue further details upon the satisfaction of certain conditions and the completion of the transactions.
UNGA closed its last trading day August 2, 2021) at Ksh.28.30 per share on the NSE, recording a 5.7 percent drop from its previous closing price of Ksh.30.00.
Unga began the year with a share price of Ksh.31.80 but has since lost 11 percent off that price valuation, ranking it 49th on the NSE in terms of year-to-date performance.