The CEO of Express Kenya Hector Robert Diniz has been excused from complying with Regulation 4 of the Capital Markets (Take-over and Mergers) Regulations 2002 by the markets regulator – CMA. The law requires a company or a person who intends to acquire a controlling stake in a listed firm to announce the offer through a press notice within 24 hours after the board of directors resolves to purchase the company or 24 hours prior to making a decision to buy a controlling stake in a company in the case of an individual.
Hector Diniz stake in Express Kenya increased from 61.64% to 71.86% after an agreement to convert the firm’s debt into equity. Express Kenya Limited owed Airport Trade Centre KSh42 million and Diniz Holdings Limited KSh38 million – both companies belong to Hector Diniz.
Shareholders of Express Kenya approved the plan to convert debt into equity in an extraordinary meeting held on 6th June 2019. Following investors and regulatory approval, the 80 million debt was converted into 12.3 million additional shares in the listed logistics firm. As a result, Hector’s ownership in the business increased by 10%.
A notice issued by the Capital Markets Authority revealed that Hector Diniz does not intend to acquire the whole company.