Diaspora Remittances
Diaspora remittances in October hit a fresh monthly high of USD 185.5 million (30.13% y/y; 5.34% m/m)
This was mainly propelled by remittances from the US which grew 40.84 percent year-to-year (3.40% m/m) and Europe which grew 31.55 percent year-to-year (296% m/m) to USD 104.48 million and USD 55.30 million respectively.
Remittances in the first ten months have grown by 10.44 percent to USD 1.57 cementing its pole position as a source of foreign exchange. Diaspora remittances have helped cushion the shilling which has been steady in the year.
Express Kenya Taken Over
Diniz Holdings Ltd has announced a take-over offer of Express Kenya Plc (NSE: XPRS) for a cash consideration of KES 5.50 per share for 13, 582,592 (38.36%) of the issued shares of XPRS.
Currently, Diniz Holdings Ltd and its affiliates hold 61.64% through Etcoville Holdings Ltd and Hector Robert Diniz. Shareholders holding the 38.36% stake will receive a premium of 48.6% to the latest closing price (KES 3.70) of XPRS.
This price values the business at KES 194.7Mn against a negative book value of 3.5 million shillings as at June 2017, a great deal for the minority shareholders.
If the transaction receives approvals from shareholders of XPRS and the Competition Authority of Kenya, XPRS will be delisted from the NSE becoming the second takeover of a listed company this year after Marshalls East Africa Ltd.
Notably, regulatory action by the NSE effected the delisting of Hutchings Biemer Ltd and Baumann Limited in August this year.