Majority shareholders support BOC Kenya acquisition

The investment consortium that has issued a notice of intention to acquire BOC Kenya Plc (NSE: BOC) the listed supplier of industrial, medical and special gases in East Africa has confirmed that the bid has the support of the majority shareholder, BOC Holdings.

Carbacid Investments Limited (CIL) (NSE: CARB) in collaboration with Aksaya Investments LLP explained that the ongoing intended offer had the blessings of United Kingdom-based BOC Holdings who are BOC Kenya Plc’s single largest shareholder.

The two local investment firms, last week announced a Sh1.2 billion takeover bid for 100 per cent shares of BOC Kenya Plc, subject to regulatory approvals.

Speaking when he provided a progress update, CIL Chairperson Amb. Dennis Awori said the intended offer has taken off to a good start with shareholder and regulatory submissions on course. Globally, BOC Holdings, Amb. Awori said, has been reorganising its business portfolio and has been pursuing strategic market exits such as the one currently at play in Kenya to focus on some of its key markets.

BOC Holdings has provided CIL and Aksaya Investments with an irrevocable undertaking as part of the company’s (BOC Holdings) commitment to accept the intended offer. BOC Holdings, holds 12,765,582 ordinary shares in BOC Kenya Plc, constituting 65.38 per cent of the issued and fully paid-up share capital of the local company.

“In the irrevocable undertaking, BOC Holdings has undertaken to accept the offer to acquire their shareholding once the offer document is issued,” Awori said.

While BOC Kenya produces and supplies industrial, medical, and special gases, CIL’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.

Amb. Awori further explained that the proposed acquisition of BOC Kenya Plc by CIL and Aksaya will, in the longer term, position the enlarged group to become the leading regional supplier of choice for carbon dioxide gas and related products, and industrial, medical and special gases and related equipment and services.