The Court of Appeal in Malindi has granted an injunction preventing the transfer or dealing of shares held by First European Finance Investment Limited (FEFI) in three real estate companies within the Vipingo Group.
- •These companies include Sunsail Trading Company Limited, Vipingo Ridge Limited — a luxury golf and residential estate, and Vipingo Beach Limited — all located in Kilifi County.
- •The ruling follows an application by Alastair Mark Cavenagh, a Welsh Businessman and a former rally driver involved in a shareholder dispute over his rights to shares in the companies.
- •Cavenagh argued that any changes in the governance or ownership structure of the companies before the appeal would make the potential success of his case meaningless.
“Any drastic changes in the governance, administrative and shareholding frameworks of the 3rd respondent before the intended appeal is heard and determined…would be difficult to undo,” Justice Agnes Murgor ruled.
Cavenagh’s case centers around his claim to shares that he argues were rightfully owed to him following a deal with David Mitchell, a former shareholder in the companies. In 2017, Mitchell, who was in ill health, was approached by Christopher Gordon Horsey and David Horsey with a proposal to sell his shares to them. However, due to an earlier disagreement with the Horsey brothers, Mitchell would not sell his shares to them.
Cavenagh asserts that he and the Horseys had agreed to a joint acquisition structure, where each would hold an equal third of the shares after facilitating Mitchell’s sale of the shares. However, in March 2018, the Horseys allegedly breached this agreement by acquiring a controlling stake, leaving Cavenagh with a minority position.
The dispute has escalated following claims that the Horseys have reneged on the terms set out in written agreements. However, they argue that Cavenagh’s interest in the shares is purely commercial, linked to the loan they provided him to finance his portion of the FEFI shares.
The ruling effectively freezes the situation, ensuring that no changes can be made to the shareholding structure of the Vipingo companies until the appeal is resolved. Sunsail Trading Ltd was incorporated in 2004 by Alastair Cavenagh and the late David Mitchell, originally established with a 50-50 shareholding, overseeing the Vipingo properties.
