CARBACID INVESTMENT SHAREHOLDERS APPROVE THE PROPOSED ACQUISITION

Carbacid investment shareholders approve proposed acquisition.PHOTO/CORRESPONDENT

Carbacid Investment Plc Shareholders Approve the Proposed Acquisition of up to 100% of the shares of BOC Kenya PLC

By Donald Kogai

Carbacid Investments PLC’s (CIL) shareholders approved the acquisition

of up to 100% of the shareholding of BOC Kenya Plc (BOC) pursuant to

the offer that was announced in November 2020. The proposal was voted

upon and approved at CIL’s 49th annual general meeting of the

shareholders (AGM).

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).

The proposed acquisition, valued at just over Ksh 1.2 billion, is

subject to regulatory approvals and is part of CIL’s diversification

and growth plan.

With a shareholder base of more than 3000 investors, delegates

attending the AGM overwhelmingly voted (90.3%) in favour of the

proposed acquisition.

The shareholders asked various questions about the Offer made to

acquire the shares of BOC and the rationale for the acquisition. The

Chairman outlined the commercial rationale for making the offer and

advantages to CIL of expanding its business portfolio through the

proposed acquisition noting the fact that BOC and CIL have distinctly

different business lines and customer bases.

As they ratified the Offer, shareholders tasked the Board of Directors

of CIL to all use reasonable efforts to complete the acquisition as

soon as is possible.

“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,” CIL Chairman Amb. Dennis Awori

said 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 5 February

2021 to shareholders on the register of CIL.

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.

Shareholders were able to electronically register, access information

pertaining to the 2020 Integrated Annual Report, vote, ask questions

and seek clarifications.

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.

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2 Comment

  1. grandpashabet
    March 18, 2024 at21:17 pm

    CARBACID INVESTMENT SHAREHOLDERS APPROVE THE PROPOSED ACQUISITION

    http://old.remain.co.kr/bbs/board.php?bo_table=portfolio

  2. grandpashabet
    March 10, 2024 at04:59 am

    CARBACID INVESTMENT SHAREHOLDERS APPROVE THE PROPOSED ACQUISITION

    https://pristor.ru/tag/veshenki/