June 8 (Bloomberg) --Unga Group Ltd. (UNGL), a Kenyan grain miller, gained the most this month after Business Daily reported it ended a 12-year management contract with Seaboard Overseas Management Co. (SEB:US)
The stock advanced 3.6 percent to 12.80 shillings by the 3 p.m. in close Nairobi, the capital, the biggest jump since May 29, according to data compiled by Bloomberg.
Seaboard, based in Merriam, Kansas, was hired in March 2000 to return the Kenyan company to profit, Business Daily said, citing Unga’s annual report. Seaboard owns 35 percent of Unga Holdings, the parent company of Unga Group, the Nairobi-based newspaper said.
“It was effectively a toll charge on the growth of the company because they were paying a huge management fee,” Aly- Khan Satchu, chief executive officer of Nairobi-based Rich Management, said in a phone interview today.
In the year to June 30, 2011, net income climbed to 441.04 million shillings ($5.2 million), from 236.2 million shillings a year earlier, Unga said in September.
To contact the reporter on this story: Eric Ombok in Nairobi at firstname.lastname@example.org.
To contact the editor responsible for this story: Shaji Mathew at email@example.com