CMA has suspended the trading of the firm’s shares on the exchange with effect from December 4.
Troubled transport and logistics firm Express Kenya Limited plans to delist from the Nairobi Securities Exchange (NSE) after several years of loss making and falling shareholder value.
As a result the Capital Markets Authority (CMA) has suspended the trading of the firm’s shares on the exchange with effect from December 4 2017.
The logistics firm said Monday it will cease trading at the NSE following a successful acquisition of 38.36 per cent of its ordinary shares by investment firm Diniz Holdings Ltd.
The transaction which is still subject to shareholder and regulatory approvals is valued at KshKsh74.7 million ($747,000).
It involves the sale of 13.58 million shares at an offer price of ksh5.50 ($0.05).
Express Kenya’s net losses widen last year (2016) at Ksh96.93 million ($969,300) compared to a loss of Ksh60 million ($60,000) in the previous year (2015), with a negative working capital of Kh17 million ($170,000).
The firm’s troubles started way back in 2011 after the regional beer maker East African Breweries Ltd (EABL) terminated its distribution contract and replaced it with DHL.
The move plunged Express Kenya into loss as the EABL contracted accounted for more than half of its revenuers.
The loss of the contract forced Express Kenya to change its business strategy by diversifying into the real estate though the move is yet to improve its finances.
On Friday last week the firm’s stock on the NSE improved 1.35 per cent to Ksh3.75 ($0.03) per share from the previous day’s (Thursday) price of ksh3.70 ($0.03) per shares.