KenolKobil board backs takeover

KenolKobil MD David Ohana. [Photo, Standard]

Plans by French oil marketing firm Rubis Energie to acquire KenolKobil have hit the homestretch after the latter’s board of directors accepted the takeover bid.

The board in a statement on Friday said it had recommended to shareholders to accept the offer.

Rubis Energie acquired a 24.99 per cent stake from some of KenolKobil’s major shareholders in October, after which it made a bid to acquire the remaining 75.01 per cent of the Nairobi Securities Exchange (NSE) listed oil marketer.

It is set to pay a premium of Sh23 per share of the Kobil stock compared to an average Sh19 that it has been trading at for some weeks now. The deal is worth Sh36 billion.

KenolKobil Chairman James Mathenge said the takeover bid received regulatory approval on December 20, 2018.

“The offer subsequently opened on December 20 and will close on February 18,” he said.

In its offer document, Rubis said if it gains control of 90 per cent of KenolKobil, it will invoke rules allowing it to compulsorily acquire the remaining shares.

If it successfully acquires between 75 percent and 90 per cent the firm will delist KenolKobil.