, NAIROBI, Kenya, July 8- Former Chief Executive Officer Kestrel Capital East Africa Andre Desimone will pay a penalty of Sh2,500,000 following his involvement in insider trading on KenolKobil shares in the period before the takeover announcement was made public in October 2018.
This comes after the Capital Markets Authority constituted an Ad Hoc Board Committee for the sole purpose of hearing and determining the allegations on the suspicion’s trades in KenolKobil shares and to prescribe sanctions.
“Andre Desimone has also been disqualified from holding office as a key officer of a public listed company and a licensee or in any other capacity in an approved institution of CMA,” CMA said.
He has been found guilty of disclosing price sensitive material non-public information on the KenolKobil transaction on the sale of 24.99 % Wells Petroleum shareholding to Rubis Energie and the impending takeover of KenolKobil Plc by Rubis to the two identified stockbroking agents.
CMA has also disgorged Sh4,692,497.50 from one of the stockbroking agents of Kestrel East Africa Aly Khan Satchu and Sh23,413,700.00 from Kunal Bid.
Khan is guilty of receiving commissions from the trades and has now been disqualified from holding office as a key officer of a public listed company or in any other capacity in an approved institution of CMA in a period of three years.
The regulator said that the Committee has also disgorged Sh333,747.00 being the amount received by Bid Securities Limited from Kestrel Capital East Africa Limited and Sh14,569.50 being the amount received by Bid Management Consultancy Limited as the commissions from the respective trades conducted based on insider information.
“Kestrel Capital has also disgorged Sh9,863,767.10 being the commissions earned on the transactions executed through the two stockbroking agents to a no Contest Settlement Agreement,” CMA added.
In May CMA recovered Sh477 million from the investigation which is put in the Investors Compensation Fund.
One is guilty of insider trading, when in possession of privileged information which is material, price sensitive and non-public either trades in securities relying on that information, discloses the same to another person who trades based on the information and encourages someone else to trade relying on the same information for gain or to avoid a loss.