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Carbacid Investments Plc seeks to acquire BOC Kenya in a Sh1.2bn takeover bid

NAIROBI, Kenya, Nov 26 – Listed local investment firm Carbacid Investments Limited in collaboration with Aksaya Investments LLP has today confirmed the placing of a Kshs 1.2 billion takeover bid for 100% shares of BOC Kenya as part of its market expansion plans, subject to regulatory approvals.

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

 Carbacid Investments Plc is an investment holding company invested in carbon dioxide gas production processing and marketing through its main operating subsidiary, Carbacid (CO2) Limited. The firm also has investments in property, in shares in other listed companies, investments in bonds, and financial assets. Aksaya Investments LLP is a local investment firm wholly owned by veteran local entrepreneur B. C. Patel, who also holds, jointly with A.B. Patel, a 40.38 percent shareholding in  CIL.

CIL and Aksaya have made on offer price of Kshs 63.50 per one ordinary share of BOC which represents a premium, of KES 4.67 (7.94%) over the 30-day volume-weighted average price per ordinary share; and KES 6.62 (11.64%) over the 90-day volume-weighted average price per ordinary share as at Tuesday this week.

Speaking on behalf of CIL and Aksaya, the CIL Chairman Amb. Dennis Awori said the 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% 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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CIL, Amb. Awori said, is a well-governed and managed business that has the extensive knowledge of the local and regional carbon dioxide  market, demonstrated focus on performance and growth, and has a strong governance framework to enable efficient and commercially-focused decision-making to improve the performance of BOC.

 

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