Carbacid’s planned takeover of BOC hit by delays
Published on: February 05, 2021 02:44 (EAT)
The takeover of BOC Kenya by Carbacid Investments has run into new headwinds with BOC yet to serve its shareholders with the takeover offer documents. In a notice on Friday, BOC informed its shareholders that it would not circulate the documents as planned pending the resolution of undefined issues. “This is to allow for consultations pertaining to certain issues that have risen related to the proposed transaction and which impacts the takeover documents,” BOC’s board stated. Earlier last month, BOC applied and received approval from the Capital Markets Authority (CMA) to extend the time granted to serve its shareholders with the offer documents. In contrast, Carbacid shareholders’ approved the planned acquisition of the manufacturer at the end of January and only awaits requisite approvals from regulators and the BOC shareholders. The deal nevertheless has the approval of BOC’s largest shareholder in BOC Holdings-United Kingdom. Carbacid, the manufacturer of carbon dioxide for industrial use is looking to merge with the medical and special gases producer to become the leading manufacturer of industrial gases in the region. In November, the firm alongside Aksaya Investment, both owned by the Baloobhai family, put forth a joint Ksh.1.24 billion bid for BOC Kenya or an equivalent Ksh.63.50 per share. Carbacid says it will leave both entities as enlistees of the Nairobi Securities Exchange (NSE) upon the completion of the deal. BOC says it will offer an update on the submission of the offer documents to shareholders at the earliest opportunity.