This archive report was first published on 2 July 2021.
On July 1, 2021, Nairobi Business Ventures' board of directors made a significant announcement that would send the company's stocks soaring at the Nairobi Securities Exchange (NSE). The company revealed plans to acquire assets worth over Ksh3 billion, marking a major shift in its strategy.
Trading volumes surged on July 2, 2021, with the company's stocks hitting a 52-week high of Ksh12.30. The stocks had closed the previous day at Ksh11.20.
According to the company's statement, the feasibility study for the construction of a cement manufacturing facility had been concluded, and preliminary work was underway to establish the plant.
The assets set to be acquired include an 11.35-hectare land parcel in Machakos County for the cement manufacturing plant, 100% ownership in Delta Automobile, a heavy commercial vehicle maintenance company, 100% ownership in Air Direct, an aviation company, and 100% ownership in Aviation Management Solution Limited, a company with a hangar and building near the Jomo Kenyatta International Airport (JKIA).
ABC Capital was appointed as the transaction advisor, while MW & Company advocates served as the legal advisor.
Nairobi Business Ventures, which started as a shoe-selling company behind the K-Shoe brand, has undergone a significant shift in strategy since the entry of Dubai-based Delta International FZE, which acquired an 84% stake in the business in late 2020.
