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Carbacid shareholders approve Kshs. 1.2B BOC Kenya takeover bid – KBC | Kenya’s Watching


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Carbacid Investments PLC’s (CIL) shareholders have on Friday, approved 100% acquisition of BOC Kenya Plc (BOC) in a deal valued Kshs. 1.2 billion.

The proposal was voted upon and approved at CIL’s 49th annual general meeting of the shareholders (AGM) following a bid placed in November 2020.

On 25th November 2020, CIL and Aksaya Investment LLP as Co-Offerors notified BOC of their intention to make a joint takeover offer to acquire up to 100% of the shares of BOC, being 19,525,446 ordinary shares with a par value of KSh 5.00 for a cash consideration of KSh 63.50 per share (Offer).

With a shareholder base of more than 3000 investors, delegates attending the AGM overwhelmingly voted (90.3%) in favour of the proposed acquisition.

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CIL Chairman Amb. Dennis Awori told shareholder that the deal is meant to expand Carbacid business portfolio through the proposed acquisition noting the fact that BOC and CIL have distinctly different business lines and customer bases.

This acquisition is part of our diversification strategy and the combination of BOC’s product portfolio and services with our business is an excellent match that will position us to become a leading regional supplier of choice for industrial, medical and special gases and related equipment and services,” said Amb. Awori during the AGM.

While BOC produces and supplies industrial, medical and special gases, CIL’s main operating subsidiary Carbacid (CO2) Limited is the region’s leading producer of natural food-grade carbon dioxide extracted from natural underground reservoirs in Kenya.

The two businesses will complement each other to provide a full range of gases and services in the region.

The Co-Offerors have already secured an irrevocable undertaking from BOC’s single largest shareholder, United Kingdom based BOC Holdings, (which holds 12,765,582 ordinary shares in BOC, constituting 65.38% of the issued and fully paid-up share capital of BOC) to sell the BOC Holdings shares to the Co-Offerors.

During the AGM, CIL’s shareholders also approved the recommendation by the Board of Directors of a final dividend of KShs. 0.70 per ordinary share making a total dividend payout of Kshs. 178 million in respect of the financial year ended 31 July 2020.

The shareholders noted CIL’s strong performance underpinned by robust risk management, effective compliance and sound governance framework amidst a tough environment occasioned by the COVID-19 pandemic.

The final dividend of Kshs 0.70 will be paid on or before 5th February 2021 to shareholders on the register of CIL as at close of business on 9th January 2021.

The AGM was held virtually due to the restrictions on public gatherings issued by the Government of Kenya to limit the spread of COVID-19.

The CIL Board of Directors assured shareholders that the company’s future outlook remains very positive, driven by strong investor confidence and the proposed acquisition of BOC.

The proposed acquisition, now awaits necessary regulatory approvals and is part of CIL’s diversification and growth plan.

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