Unga Group Nick Hutchison. PHOTO / COURTESY Miller and manufacturer Unga Group is expected to further extend a shake up of its business as the company seemingly takes a new growth stance.
On Wednesday, the Nairobi Securities Exchange (NSE) listed firm made further disclosures on expected business restructuring pending the fulfillment of pre-deal conditions.
Unga has entered conditional investment agreements pitting two of its subsidiaries with global nutrition and aquafeed manufacturer Nutreco International B.V.
Nutreco and Unga Farm Care East Africa Limited are expected to establish a 50:50 joint venture company in Kenya and transfer their respective Kenya aquafeed businesses and select production assets.
The bulk of Unga Farm Care business is expected to continue without change.
Across the board, Nutreco and Unga Millers Uganda Limited will invest and establish a shared joint venture company under which they will transfer their respective feed and nutritional businesses in the country in a pact that also includes select assets.
The impending transactions are part of an ensuing business realignment strategy by Unga Group as it seeks a rebound in profitability after a significant performance dip through the last financial year ended in June 2020.
Last week, Unga Group disclosed a purchase agreement with cold storage and logistics company BigCold Kenya to sell its bakery business represented by the Ennsvalley Bakery Limited.
Unga Group has previously undertaken strategic investment partnership in bids to strengthen its business including pacts with the Seaboard Corporation.
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