BOC Kenya acquisition bid gets nod

BOC MD Marion Gathoga (PHOTO: Wilberforce Okwiri)

 

 

 

Carbacid Investments Plc (CIL) shareholders have approved the acquisition of up to 100 per cent of the shareholding of BOC Kenya Plc (BOC) in an offer announced last November.

The proposal was approved at CIL’s 49th shareholders’ annual general meeting (AGM).

BOC produces and supplies industrial, medical and special gases while CIL’s main operating subsidiary Carbacid (CO2) Ltd produces natural food-grade carbon dioxide extracted from natural underground reservoirs.

Last November, CIL and Aksaya Investment LLP notified BOC of their intention to make a joint takeover bid to acquire up to 100 per cent of the shares of BOC, being 19.52 million ordinary shares with a par value of Sh5 for a cash consideration of Sh63.50 per share (offer).

Growth plan 

The proposed acquisition, valued at over Sh1.2 billion, is subject to regulatory approvals and is part of CIL’s diversification and growth plan.   

With a shareholder base of more than 3,000 investors, delegates attending the virtual AGM overwhelmingly voted (90.3 per cent) in favour of the proposed acquisition.

The shareholders tasked CIL board to fast-track the acquisition process.

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

CIL’s shareholders also approved a final dividend of Sh0.70 per ordinary share - bringing the total dividend payout to Sh178 million in the financial year ending July 31, 2020.

The final dividend of Sh0.70 will be paid before Friday this week to shareholders on the register of CIL as at close of business on January 9, 2021.