Majority Shareholder Gives Greenlight for BOC Kenya Acquisition by Carbacid
The joint bid by Carbacid Investments Limited (CIL) and Aksaya Investments LLP to acquire BOC Kenya now waits for necessary regulatory approvals after the majority shareholder, BOC Holdings backed the takeover by the consortium.
Last week, the consortium confirmed the placing of a Kshs. 1.2 billion takeover bid for 100% shares of BOC Kenya as part of its market expansion plans.
In a notice published Tuesday, Carbacid Investments Limited Aksaya Investments LLP confirmed that the ongoing intended offer had the blessings of United Kingdom-based BOC Holdings who are BOC Kenya Plc’s single largest shareholder.
CIL Chairperson Amb. Dennis Awori has said the intended offer has taken off to a good start with shareholder and regulatory submissions on course.
BOC Holdings has been reorganising its business portfolio and has been pursuing strategic market exits such as the one currently at play in Kenya to focus on some of its key markets.
BOC Holdings has provided CIL and Aksaya Investments with an irrevocable undertaking as part of the company’s commitment to accept the intended offer.
The UK firm holds 12,765,582 ordinary shares in BOC Kenya Plc, constituting 65.38% of the issued and fully paid-up share capital of the local company.
“In the irrevocable undertaking, BOC Holdings has undertaken to accept the offer to acquire their shareholding once the offer document is issued,” said Awori.
While the Kenya firm produces and supplies industrial, medical, and special gases, CIL’s main operating subsidiary Carbacid (CO2) Limited is the region’s leading producer of food-grade carbon dioxide extracted from natural underground reservoirs in Kenya.
Amb. Awori further explained that the proposed acquisition by CIL and Aksaya is an excellent match that will, in the longer term, position the enlarged group to become the leading regional supplier of choice for carbon dioxide gas and related products, and industrial, medical and special gases and related equipment and services.