KenolKobil shares suspended from trading at bourse
News
By
-
| May 10, 2012
By James Anyanzwa
The shares of the oil-marketing firm, KenolKobil, have been suspended from trading at the Nairobi Securities Exchange (NSE) indefinitely.
This follows a public announcement of the largest oil marketing firm takeover bid by the Swiss-based Puma Energy.
Puma Energy, a subsidiary of Trafigura, has entered into exclusive talks to buy a majority stake in KenolKobil, which it then aims to follow up with a takeover.
The sale of shares is subject to completion of ongoing due diligence, regulatory approvals and price confirmation.
In a statement on Wednesday NSE said the suspension of Kenokobil shares is in pursuant to the provision of the Capital Markets Securities Public Offers, Listings and Disclosures Regulations 2002.
Company strength
The shares last traded at Sh12.50 per share on Monday. “The NSE in consultation with the Capital Markets Authority has therefore suspended trading of the securities,” said Peter Mwangi, the bourse’s chief executive.
READ MORE
African leaders call for climate equity and financial reforms
Entrepreneurs to be trained on cybersecurity
Inflation edges up to 5.1pc in May amidst price hikes in key sectors
Project to turn waste into fertiliser
Want to build a strong brand? This is what you should do
Captains of industry raise concerns over proposed tax hikes
E-mobility firm targets transport sector with new electric taxis
Trade CS Miano says Buy Kenya-Build Kenya aims to promote local products
Kenya Power to install 35 electric vehicle chargers
Kenya records improvements in budget transparency, utilisation
Besides strength in volume distribution via its 400 outlets span across 10 countries, KenolKobil’s key strategic asset remains its un-rivaled storage capacity. Since the introduction of fuel price controls in its key Kenyan market, KenolKobil has adapted its operations to the new environment by building a strong regional trading outfit as well as aggressively growing its
LPG business.
Puma Energy is an integrated midstream and downstream oil company active in Africa, Latin America, the Caribbean, the Baltics, the Middle East and Asia covering 29 countries and with a network of 1,100 retail stations.
If it succeeds in getting KenolKobil, it will add another 400 stations and 10 countries as part of its operations. Puma is currently strong in Southern Africa while KenolKobil is strong in east and central Africa.
The oil firm which plans an initial public offering this year, is 20 per cent owned by Angola’s state firm Sonangol.
Kestrel Capital is brokering the deal whose conclusion could boost the depressing performance of the company’s shares at the NSE and propel KenolKobil to a new level of development.
“As management, we had already expressed our wish to see such strategic development for our group,” said Jacob Segman, KenolKobil Group’s chairman and chief executive.
“We feel it is probably the right thing to take us to the next level of development and expansion throughout Africa.”