Nairobi — The recently announced Sh1.2 Billion takeover offer of BOC Kenya Plc by Carbacid Investments Limited in collaboration with Aksaya Investments LLP is set to further deepen the industrial sector development in Kenya.
Carbacid Investments Limited Chairperson Dennis Awori said the proposed transaction will result in Kenyan control of the firm, which currently features a majority multinational shareholder.
"As a wholly-owned local entity, BOC, will benefit from swifter Board and Shareholder attention that is necessary to kick start its growth and promote capital investments and more effective corporate decision making," said Awori.
"The bid underlines the commitment of local investors in expanding manufacturing capacity," he added.
According to Awori, the transaction team is now set to advance the non-conditional offer closure subject to regulatory conditions.
Currently, CIL serves a particular section of the market through its main operating subsidiary Carbacid (CO2) Limited which is the region’s leading producer of food-grade carbon dioxide, which is extracted from natural underground reservoirs in Kenya and processed to very levels of purity in highly technical plants at Carbacid’s facilities.
Awori emphasized that Carbacid is not involved in the manufacture or sale of oxygen, BOC’s main product, and the proposed acquisition is a diversification strategy as opposed to one that will increase market share in any product.
"As a truly Kenyan investment vehicle, CIL’s offer to BOC Kenya is aligned to the national development goals and we remain optimistic that the company will be locally controlled," said Awori.
BOC Kenya’s United Kingdom-based majority shareholder, BOC Holdings supports the offer made by CIL and has issued an irrevocable undertaking to sell its 65.38percent stake in BOC Kenya.
At the recently concluded AGM of CIL, over 90percent of CIL shareholders present voted in favour of CIL completing the takeover of BOC, emphasizing the overwhelming support by CIL’s shareholders for the takeover of BOC.