Suspension of NBV shares extended

NSE Market watch board during ringing of the bell ceremony at Nairobi securities Exchange. [File, Standard]

The suspension of trading of Nairobi Business Ventures (NBV) shares at the Nairobi Securities Exchange (NSE) has been extended for two more weeks.

A notice from the NSE said this was to allow the company to finalise on a restructuring exercise.

Last month, Delta International FZE, which deals in chemicals, transport and logistics, was revealed as a strategic investor looking to acquire a majority stake in the loss-making firm.

This is after a shareholders’ meeting voted on a proposal meant to raise Sh83 million and the entry of a new investor as the shoe and leather products retailer transitions into a cement and glass manufacturer.

"Notice is hereby given on the extension of suspension from trading of Nairobi Business Ventures (NBV) Ltd shares. The extension of suspension is to allow for the completion of the company’s restructuring exercise which includes a share split, allotment and issuance of shares to Delta International FZE (Delta) and subscription agreement between NBV and Delta," said the NSE yesterday.

The extension was approved by the Capital Markets Authority and will remain in force until November 30. “All shareholders, investors and the public are advised to take note of the suspension,” said the NSE.

Last year, NBV, which sold footwear under the K-shoe brand, shut down its two remaining stores owing to a cash crunch. The retailer posted Sh39.5 million loss in the 2019/20 financial year.

NBV once operated six K-Shoe stores in the capital city's prime locations and planned to open 12 in five years.

Delta is set to acquire 84 per cent majority stake at NBV for Sh83 million.