French company’s takeover of KenolKobil in final stages


French company's takeover of KenolKobil in final stages
Pedestrians walk past a Kobil service station with the prices display of petrol (US $ 0.84 per litre unleaded) and diesel (US $ 0.72 per litre) on a signage in Kenya's capital Nairobi, February 7, 2016. The global oil price is hovering at about $30 U.S. dollars a barrel. REUTERS/Thomas Mukoya

In Summary

  • Acknowledging the takeover offer, KenolKobil board of directors has since approved the deal on the basis of independent financial advice and has urged its minor shareholders to follow suit.
  • The pronouncement of Rubis Energie SAS to take over the remaining stake of KenolKobil saw a notable appreciation of the offeree’s share price which has since risen to Ksh.21.35 as at the close of trading on Friday the 11th of January from Ksh.15.30 on October 24, 2018.

French petroleum marketer Rubis Energie SAS could complete the takeover of KenolKobil as early as March 2019 following the acquisition of the necessary requirements from sector regulators.

Both the Capital Markets Authority (CMA) and the Competition Authority of Kenya have given the green light to the deal to end an inquiry into suspect insider trading at KenolKobil in and around Rubis’s public announcement of the takeover bid in October 2018.

Experts involved in the transaction see the deal all but sealed pending the capture of at-least 50 percent of the remaining shares over the ongoing offer period to the evening of Monday the 18th of February 2019 and approval from the Energy Regulatory Commission.

“We expect the deal to be sealed soon after the 18th of February when shareholders who will have accepted the offer  begin receiving proceeds for the sale of their shares. We are confident Rubis will meet the 50 percent threshold given the attractive offer price,” Bowmans Law  Legal Adivisory Patner Paras Shah told Citizen Digital over a phone interview.

The attractive cash offer of Ksh.23 per share is expected to anchor the capture of the remaining 50 percent of KenolKobil’s stake, a factor sighted by the offeror Rubis in a statement to media houses.

“As the cash offer has been recommended for acceptance by KenolKobil Plc directors, and has received most of the requisite regulatory approvals, and given the attractive offer price, Rubis Energie SAS is confident that the cash offer will be accepted shareholders and the cash offer will complete successfully,” read the statement.

Acknowledging the takeover offer, KenolKobil board of directors has since approved the deal on the basis of independent financial advice and has urged its minor shareholders to follow suit.

The pronouncement of Rubis Energie SAS to take over the remaining stake of KenolKobil saw a notable appreciation of the offeree’s share price which has since risen to Ksh.21.35 as at the close of trading on Friday the 11th of January from Ksh.15.30 on October 24, 2018.

Rubis Energie currently holds 24 percent of KenolKobil’s stake and is looking to grow this share to 75 percent through the acquisition deal to trigger a complete takeover of the petroleum marketer in accordance to market requirements.

The takeover would mean Rubis’s entry into the East African market to command KenolKobil’s 350 outlets across the region. Rubis Energy values KenolKobil at Ksh35 billion.

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Story By Kepha Muiruri
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