Oil marketer KenolKobil to list 79m employee shares
SEE ALSO :Comesa okays KenolKobil acquisition dealBenefits Esop shares offered to workers as bonuses and benefits are usually held by the company, which can then buy them back from the workers upon exit, offering a windfall at the end of engagement. Market analysts are also closely monitoring any changes to terms of the current Esop, KenolKobil having had a rough resolution with its former boss Jacob Segman over a similar deal that weighed down 2017 profits. “Net profit after tax of Sh2.46 billion was impacted by settlement of legacy matters and disputes that included KPRL receivables impairment, former CEO Esop settlement and other long outstanding legal cases. Without these extraordinary expenses, net profit would have been Sh3.4 billion,” the company said in its annual report. KenolKobil had gone to court seeking a determination as to whether it was legal for the former executive to exercise his share options.
SEE ALSO :KenolKobil board backs takeoverMr Segman was paid about Sh77 million to settle his Sh300 million claim under an Esop agreement. The CEO, who had served for 23 years, had a contract that allowed him to acquire at least four per cent of the total issued share capital between 2007 and 2010. Current KenolKobil CEO David Ohana said he had no control over the past and was only concerned with the current offer.