BOC freezes takeover by Carbacid as deal staggers
BOC Kenya has frozen the proposed takeover of the company pending guidance from the Capital Markets Authority (CMA).
The freezing of the transaction that would have seen Carbacid Investments acquire the industrial gas manufacturer in just a few months follows the filing of an appeal with the Capital Markets Tribunal (CMT).
“Pending further guidance from the CMA or CMT, we wish to inform you that no further action should be taken in relation to the activities set out in the transaction timetable provided in the takeover offer document forwarded to you on February 19,” BOC said in a notice to shareholders on Monday.
“This includes the filling and return of acceptance forms. Shareholders who have submitted their acceptance forms to date need not take any action until further guidance is provided.”
Earlier this month, billionaire businessman Ngugi Kiuna, a major shareholder in BOC Kenya sort to quash the deal citing the undervaluation of the company by Carbacid.
Carbacid offered to buy BOC for Ksh.63.50 a share for a total of just over Ksh.1.24 billion while an independent advisory of the offer by Dyler and Blair Investment Bank placed the value of BOC at a higher Ksh.91.76 per share.
Before Monday’s notice, Carbacid’s Board had hoped BOC shareholders would have accepted the deal without further improvements before April 6 closure date.
“The Carbacid offer to acquire BOC Kenya is off to a good start with a positive response this far. We firmly believe that the offer is fair and represents a realistic underlying value of BOC Kenya and one that will allow us to invest in the rejuvenation of the company in coming months,” said Carbacid Investment Chairman Dennis Awori.
Monday’s notice means Carbacid is likely to wait longer for a decision on its proposal from which it had hoped to consolidate its market share as a manufacturer of industrial gases in the East and Central Africa region.
Both entities are industrial gas manufacturers and are listed on the Nairobi Securities Exchange (NSE).