Carbacid seeks out merger with BOC in Ksh1.2 billion bid


Carbacid seeks out merger with BOC in Ksh1.2 billion bid
PHOTO | COURTESY

In Summary

  • The offer will see Carbacid pay out a Ksh.63.50 premium for each ordinary share of BOC Kenya.
  • The deal is however flanked by Aksaya Investments with the 2015 Company’s Act prohibiting the manufacturer from acquiring more than a 50 per cent stake in BOC given the peers own 5.8 per cent shareholding in Carbacid.
  • If concluded, the transaction will see BOC delisted from the Nairobi Securities Exchange (NSE) merging its business with Carbacid.
 

The manufacturer of carbon dioxide gas for industrial use Carbacid Investments has made a Ksh.1.2 billion bid for its peer BOC Kenya, an industrial and medical gases manufacturer.

The offer will see Carbacid pay out a Ksh.63.50 premium for each ordinary share of BOC Kenya.

The deal is however flanked by Aksaya Investments with the 2015 Company’s Act prohibiting the manufacturer from acquiring more than a 50 per cent stake in BOC given the peers own 5.8 per cent shareholding in Carbacid.

Carbacid expects the acquisition to bolden its position to become the region’s leading supplier of industrial and medical gases.

“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 East and Central Africa region’s supplier of choice for industrial, medical & special gases and related equipment and services,” Carbacid stated in a notice on Thursday.

Carbacid is majority owned by Amarjeet Baloobhai and Baloobhai Chbotabhai with the latter owning a 99 per cent stake in Aksaya Investment.

The pair further holds 2554 ordinary shares in BOC.

In its offer, Carbacid will seek to have BOC cut off its 5.8 per cent stake allowing it to acquire a 100 per cent shareholding in the medical gases company by itself.

On the contrary, Carbacid will run a joint bid for BOC along side Aksaya Investments with Aksaya committing to reselling its stake to Carbacid in a six months window.

If concluded, the transaction will see BOC delisted from the Nairobi Securities Exchange (NSE) merging its business with Carbacid.

Both entities are listed on the NSE.

The deal remains the subject of shareholder and regulatory approvals.

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Story By Kepha Muiruri
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