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(Sharecast News) - Camellia said on Thursday that its Kenyan subsidiary Kakuzi has launched legal proceedings to challenge recommendations from the country's National Land Commission that called for the surrender of about 3,200 acres of its agricultural land.
Kakuzi, which is listed in Nairobi and London, had been the subject of historical land claims previously flagged as a risk by Camellia in its annual reports.
The AIM-traded firm said Kakuzi received legal advice confirming it holds "clear and valid title" to the disputed land and that its ownership rights "are protected under the Kenyan Constitution".
It said Kakuzi "has consistently contested the claims and does not accept the NLC's recommendations," and had now launched legal action to oppose them.
Camellia owns 50.7% of Kakuzi and said the dispute did not pose a threat to its strategic plans or financial outlook.
The group said that it "considers that this matter will not affect delivery or outcome of its value enhancement plan or have a material impact on its financial performance."
At 1210 GMT, shares in Camellia were down 1.89% at 5,003.5p.
Reporting by Josh White for Sharecast.com.
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