NAIROBI, Kenya, Oct 24 – Rubis Energie has proposed a take-over offer of 75.01 per cent of the issued ordinary shares of KenolKobil, after it had already acquired 24.99 per cent of the capital shares.
The move will see Rubis take full ownership of the company and the delisting of the company from the Nairobi Securities Exchange.
The proposed offer price is at Sh23, a 50.3 percent premium to Tuesday’s closing price of Sh15.30.
In a statement, Rubis takeover offer would value KenolKobil Plc Sh35.668 billion.
“The acquisition has been financed by the Group’s available cash and/or from existing credit facilities, would be immediately accretive.”
NSE Chief Executive Geoffrey Odundo says the bid and subsequent delisting shows the markets’ vibrancy which is an attractive feature for investors.
“I think the company is delisting for positive reasons such as change of strategy, change of business model and capital ownership. The Kenyan market is also very attractive to investors,” Odundo sad.
Analysts at Genghis Capital say the offer of Sh23 is attractive considering the share price has never gone beyond Sh20.
“In our analysis, we noted some sluggishness in bottomline growth, with margin compression a key factor. Considering this, we valued KenolKobil Plc at Sh16.33. At the offer price, we recommend shareholders to tender their shares or sell to market at a price close to the offer price.”
KenolKobil also operates in Ethiopia, Uganda, Rwanda, Burundi and Zambia, while Rubis is a market leader in France, Switzerland, Bermuda, Jamaica, Madagascar, Morocco and Senegal.