Manufacturer Unga Limited it’s set to dispose its bakery business represented by the Ennsvalley Bakery Limited. The firm has subsequently entered an asset purchase agreement with BigCold Kenya Limited, a cold storage and logistics company to buy its baking subsidiary out.
The completion of the agreement dated July 26 now awaits the ‘satisfaction of certain conditions’.
Unga Group holds a 52 per cent controlling stake in Ennsvalley through its Unga Holdings Limited with the bakery involving itself in the baking and sale of cakes, bread and pastries.
While Unga has not disclosed reasons for the planned asset disposal, the sale is likely part of initiatives to deliver an improved performance for the Group.
The company has for instance recently signaled job cuts after posting an 88 per cent profit decline in its last financial year which ended in June 2020.
The company attributed its near profit wipe out to reduced consumer demand alongside high input costs relating to maize and wheat purchases.
Founded more than a century ago in 1908, Unga Limited has flour mills in Eldoret, Nakuru and Mombasa and has its headquarters in Nairobi.
At the turn of the century in 2000, the company entered a strategic investment partnership with the Seaboard Corporation as part of a recovery strategy preceded by losses for the company.
On its part, BigCold Limited describes itself as a logistics company providing sophisticated cold chain solutions across East Africa and has its anchor facility in Nairobi.
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