Carbacid Investments Limited (CIL) in collaboration with Aksaya Investments LLP has today confirmed the placing of a sh. 1.2 billion takeover bid for 100 per cent shares of BOC Kenya as part of its market expansion plans, subject to regulatory approvals.
In a statement issued Thursday, BOC Holdings said it holds 65.38 per cent of the ordinary shares of BOC Kenya has issued an irrevocable undertaking to the offers to accept the offer on certain terms and conditions including a long stop date of 31 July 2021.
The proposed transaction will result in the largest combined industrial gases business, bringing together Carbacid’s carbon dioxide operation and BOC’s oxygen and other gas products.
“The co-offerors have chosen to make the offer as they believe that the combination of BOC’s product portfolio and services with Carbacid’s existing business is an excellent match that will position the enlarged group to become the East and Central African region’s supplier of choice for industrial, medical and special gases and related equipment services,” Carbacid said in a notice.
Speaking on behalf of CIL and Aksaya, the CIL Chairman 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.
“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,”
CIL Chairman Dennis 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 the staff of CIL and BOC. The Co-offers believe in the underlying business of BOC and believe that they are well placed on improving the business performance of BOC.”
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 Ballobhai Chhotabhai Patel jointly with his wife Amarjeet Baloobhai Patel, hold 40.38 percent of Carbacid.
By Christabel Airo