The Competition Authority of Kenya (CAK) has unconditionally approved the acquisition of Oserian’s floriculture business and certain assets by a newly formed company, Bohemian Flowers Limited.
Bohemian Flowers has been formed by Kongoni River Farm Limited -a company involved in the cultivation of flowers for export - for the purpose of completing the transaction.
CAK said the acquisition is a rescue opportunity for Oserian, which has been losing money. Without the acquisition, 700 workers would have lost their jobs.
“The business has consistently recorded losses since 2017. Additionally, the business is currently in a negative equity position. Based on the foregoing, the Authority noted that the proposed transaction is likely to salvage a failing firm,” said CAK.
Bohemian has indicated to CAK that it intends to absorb all the Oserian employees, saving them from layoffs as was the case with Karuturi flower farm which has released thousands of workers in the recent past.
Read the complete article at www.businessdailyafrica.com.