ACQUISITION

Sweet revenge as Carbacid offers to buy out BOC Kenya

In 2009, BOC had wanted to acquire 10.6 million shares in Carbacid, which would have brought its shareholding to 94 per cent.

In Summary
  • It later withdrew its offer for Carbacid Investments.
  • Carbacid Investments confirmed the placing of an Sh1.2 billion takeover bid for 100 per cent shares of BOC Kenya.
BOC gas filling plant in Industrial area. Photo/File
BOC gas filling plant in Industrial area. Photo/File

Listed local investment firm Carbacid Investments Limited has partnered with Aksaya Investments LLP to buyout  industrial and medical gases firm, BOC Kenya. 

In a statement, Carbacid confirmed placing  a Sh1.2 billion takeover bid for 100 per cent shares of BOC Kenya (NSE: BOC) as part of its market expansion plans, subject to regulatory approvals.

A decade ago, BOC Kenya,  a subsidiary of Germany's Linde, placed a bid for the carbon dioxide manufacturer after it was suspended from the bourse in 2005 on cash flow issues. 

 
 

In 2009, BOC had wanted to acquire 10.6 million shares in Carbacid, which would have brought its shareholding to 94 per cent. It later withdrew its offer.

Aksaya Investments LLP is a local investment firm wholly owned by veteran local entrepreneur  B. C. Patel, who also holds, jointly with A.B. Patel, a 40.38 per cent shareholding in Carbacid.

The two have made an offer price of  Sh63.50 per one ordinary share of BOC which represents a premium, of Sh 4.67 (7.94 per cent) over the 30-day volume-weighted average price per ordinary share.

Carbacid chairman Dennis Awori said the acquisition would make BOC locally owned and thus better positioned to take advantage of market opportunities in Kenya and the region.

He described the proposed acquisition as an excellent match that will position the enlarged group to become the leading regional supplier of choice for industrial, medical and special gases and related equipment and services.

 

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

“Carbacid will bring its effective business and strategic acumen and deep knowledge and experience of the local industrial gas market, which can generate significant synergies between the two businesses,” Awori said.

 

He added that the enlarged group will also provide greater opportunities for employee development, advancement and growth for the staff of CIL and BOC.

Carbacid and Aksaya  have 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 per cent of the issued and fully paid-up share capital of BOC Kenya) to sell the BOC Holdings shares.