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Carbacid attempts to acquire 100 per cent stake in BOC Kenya

By Fredrick Obura | Nov 26th 2020 | 2 min read
By Fredrick Obura | November 26th 2020

NAIROBI, KENYA: Carbacid and Aksaya Investments have served BOC Kenya with a notice to acquire all of the ordinary shares of the Company at Sh63.50 per share.

At the close of the Proposed Transaction, if the offer is accepted in full, Carbacid and Aksaya investments will hold 100 per cent of the issued shares of BOC Kenya.

Carbacid is listed on the Nairobi Securities Exchange and holds companies involved in mining, processing, and marketing of natural carbon dioxide gas.

Aksaya is an investment vehicle owned by Baloobhai Chhotabhai Patel. Baloobhai Chhotabhai Patel, jointly with his wife, Amarjeet Baloobhai Patel, hold 40.38 per cent of Carbacid.

BOC Holdings which holds 65.38 per cent of the ordinary shares of BOC Kenya has issued an irrevocable undertaking to the Offerors to accept the offer on certain terms and conditions including a long stop date of 31 July 2021.

The offer is also subject to there being no reduction of more than 15 per cent in the net asset value of the Company as at December 31 2019.

The Proposed Transaction is subject to requisite regulatory approvals including those of the Capital Markets Authority and the Competition Authority of Kenya.

“In the interim, shareholders and the investing public are advised to exercise caution when dealing in the shares of the Company.”

BOC Kenya is a leading supplier of industrial, medical and special gases in Kenya.

Speaking on behalf of CIL and Aksaya, the CIL Chairman Amb. Dennis Awori said the the Sh1.2 billion acquisition would make BOC  locally owned and thus better positioned to take advantage of market opportunities in Kenya and the region.  

He described the proposed acquisition of BOC Kenya as an excellent match that will position the enlarged group to become the leading regional supplier of choice for industrial, medical and special gases and related equipment and services. 

While BOC Kenya 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. 

“CIL will bring its effective business and strategic acumen and deep knowledge and experience of the local industrial gas market, which can generate significant synergies between the two businesses,” Amb. Awori said, adding that, “this structure will lead to swifter decision making. The enlarged group will also provide greater opportunities for employee development, advancement and growth for staff of CIL and BOC. The Co-Offerors (CIL and Aksaya) believe in the underlying business of BOC and believe that they are well placed on improving the business performance of BOC.” 

The Co-Offerors  have secured an irrevocable undertaking from BOC’s single largest shareholder, United Kingdom based BOC Holdings, (which holds 12,765,582 ordinary shares in BOC,  constituting 65.38 per cent of the issued and fully paid-up share capital of BOC Kenya) to sell the BOC Holdings shares to the Co-Offerors once the offer is made.

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