By BUSINESS DAILY

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Trading on Express Kenya shares has resumed at the Nairobi Securities Exchange (NSE) after a three month suspension following a takeover bid by the firm’s CEO Hector Diniz.

The NSE announced Tuesday in a notice that the suspension was lifted effective March 5, although the notice was silent on how far the offer has proceeded or the reason for the lifting of the suspension.

The stock immediately rallied after resuming trading on Monday closing the day 9.3 per cent up at Ksh4.10 ($0.04). On Tuesday, it was up again by a near maximum 9.8 per cent or 40 cents to Ksh4.50 by midday.

“Notice is hereby given on the lifting of the suspension in trading of Express Kenya securities effective March 5, 2018. This follows the suspension of trading effected on the security on December 4, 2017 to facilitate the takeover of Express Kenya by Diniz Holdings Limited,” said the NSE in the notice.

Diniz Holdings, an investment firm, has bid to acquire the 38.36 per cent stake held by other shareholders other than its affiliates for Ksh5.50 ($0.05) a share.

The share was trading at trading at Ksh3.70 ($0.03) when it was suspended on December 4, meaning the offer price represented a 48.65 per cent premium for investors. This premium is however likely to shrink now that the share is trading again with an upward bias.

Express now becomes the second counter that is trading actively at the bourse while under a takeover offer by an existing shareholder, the other being Unga Holdings where US-based shareholder Seaboard has mounted an offer to buy out other minority shareholders.

A successful bid, subject to regulatory approvals and various conditions, will result in delisting of the logistics firm from the NSE.