The Nairobi Securities Exchange (NSE) has suspended the trading of shares of shoe vendor, Nairobi Business Ventures ticker:NBV, to pave way for a key financial transaction deal with new investors and lenders.
NSE said in a Wednesday afternoon statement that the shares would remain suspended for a month effective October 14, 2020, to allow for the completion of the company’s restructuring.
“The company has been in talks with new investors and creditors looking to invest in the company. The talks are at advanced stages having met most conditions precedent for the purposes of the signed term sheet between the parties,” said NSE.
“All shareholders, investors and the general public are asked to take note of the suspension.”
The Capital Markets Authority (CMA) has approved the suspension which renders NBV shareholders unable to trade in the stocks.
NBV started out as a shoe distributor in Kenya through the brand name ‘Kwanza shoes’ and ran on the model of importing shoes from China and India. The company later in 2013 changed the brand to ‘K Shoe.’
The firm posted a net loss of Sh34.72 million in the last financial year, narrowing from a Sh76.53 million posted in the previous year.
NBV becomes the latest firm to announce a deep business restructuring at a time many firms are looking beyond the NSE for money to steady their businesses.
TransCentury ticker:TCL is also eying delisting to open talks with private equity firms, while Kenya Airways #ticker:KQ has been suspended since July 3 to allow for the privatisation process.