BOC Kenya has frozen the proposed takeover of the company pending guidance from the Capital Markets Authority (CMA).
In a notice yesterday, BOC informed shareholders 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 them on February 19.
“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,” stated the notice.
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).
Carbacid offered to buy BOC for Sh63.50 a share for a total of just over Sh1.24 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.
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.