Rubis misses a clean sweep in Kenolkobil share deal scheme

A view of kenol kobil petrol station in Nairobi.FILE
A view of kenol kobil petrol station in Nairobi.FILE

Rubis Énergie SAS’ may only manage a majority stake in KenolKobil as opposed to a takeover if shares bought so far is anything to go by.

Sources close to the transaction revealed the French firm has already met the minimum acceptance threshold of 50 per cent plus one.

This means that KenolKobil will continue operating as a listed company at the Nairobi Securities Exchange. While the sources could not reveal reasons for the failed buyout, reports of insider trading might have had a negative effect on it.

Capital Markets Authority, flagged suspicious trading in KenolKobil shares moments after Rubis announced its takeover plans. The deal is expected to be completed by March 11 if all conditions set by the conglomerate are met.

A cash offer to purchase all the issued shares of KenolKobil by Rubis at Sh 23 per share closed last evening. The takeover is valued at Sh35.3 billion.

Rubis could not reveal the exact number of shares sold as at close of the offer last evening. However, they expressed confidence that they will receive acceptances from most shareholders.

If at the close of the offer Rubis Énergie owns more than 75 per cent of the issued share capital, then, KenolKobil would be delisted. If it received acceptances from shareholders holding more than 90 per cent, they would have to buy out the remaining shares at the same Offer Price.

In July 2018, efforts by American miller Seaboard Corporation to delist Unga Group via takeover offer failed. This hit a snug after minority shareholders held onto their shares.

NIC bank is in talks to merge with Commercial Bank of Africa to create one of the largest financial services groups in the region.

Last week, the Employment and Labour relations court lifted an injunction against KenolKobil by its ex-employees, paving way for completion of its buyout by Rubies.