CMA cautions investors about the Unlawful Public Offer by Cembe Millers
Nairobi February 19, 2015… In line with its mandate of protecting investors, the Capital Markets Authority (CMA) would like to caution members of the public against participating in the unlawful public offer by Cembe Millers, since it has not been approved by the Authority. The public offer was made today (February 19, 2015) through a public advertisement in the print media.
While issuing the cautionary statement, the CMA confirmed that the Cembe Millers public offer had not been approved as required for all public offers. The Authority noted that the purported offer was in breach of Section 30A Subsection (4) of the Capital Markets Act Cap 485A, which states; ‘’Subject to the provisions of this Act, an issuer or an offeror shall not make a public offer of securities unless that issuer or offeror has submitted a prospectus in respect of that offer to the Authority for approval’’.
The CMA has written to the promoters of the Cembe Millers offer requiring them to immediately withdraw it. The Authority will further proceed to launch investigations in collaboration with other arms of Government to establish the identity of the persons behind the offer and take appropriate action against them.
The Authority finally advised Kenyans to confirm if any public offers have been approved by the Authority before participating to avoid loss and exposure.