The shareholders on Nairobi Business Ventures, a shoe and leather accessories retail chain listed on the Nairobi Securities Exchange, have approved Ksh83 million capital injection by Delta International FZE.
Shareholders approved to allot and issue up to a maximum of 415,000,000 ordinary shares of Ksh0.50 each in the company to Delta International subject to payment of the aggregate subscription price of Ksh83 million being Ksh0.20 per new share. Consequently, Delta International shall own 84 percent of the issued share capital of the company with the new share credited as fully paid and to rank at the same rate as the existing ordinary shares.
In addition, the shareholders approved to split the nominal capital of the company from Ksh50,000,000 divided into 50,000,000 shares of Ksh1 each, to Ksh50,000,000 divided into 100,000,000 ordinary shares of Ksh0.50 each. There was an increase in the nominal share capital of the company by the creation of 400,000,000 new ordinary shares of a par value of Ksh0.50 each and shall rank at the same rate and have rights equal to the existing ordinary shares of the company.
On October 14, the Nairobi Securities Exchange (NSE) suspended the firm from trading for one month on the bourse to allow completion of the company’s restructuring. At the time, NSE disclosed that talks with new investors and creditors were at advanced stages having met most conditions precedent for the purposes of signed term sheet.
NBV Chairman Sheth Kumar says that the leather product retail chain will exit the retail business. The partnership will enable NBV to tap into Delta’s vast experience in trade, services, and manufacturing for sustainable products.