An employee of BOC Kenya #ticker:BOC has obtained court orders stopping the sale of the company to Carbacid Investments #ti until his claim of Sh15 million is addressed.
Mr Brian Busiyile Simiyu filed a case before Nairobi’s Employment and Labour Relations Court which ordered that the takeover of BOC by Carbacid be suspended pending a hearing on February 9, 2021.
“That in the interim and pending service and hearing directions of the application and notice of motion dated January 19, 2021, the respondent (BOC) is hereby restrained from getting into any arrangement with Carbacid Investment, Aksaya Investments LLP, and/or any other entity to merge, transfer or reorganise its business and/or dispose its assets pending attendance in court on February 9, 2021,” Lady Justice Mbaru Monica ordered on January 26, 2021.
“That for good order and to ensure compliance, serve the entities of Carbacid Investments and Aksaya Investments LLP with orders above … and that upon service, the respondents shall reply and attend for hearing directions on February 9, 2021.”
The court case has interrupted BOC’s takeover timetable, with the publication of documents relating to the buyout being delayed once again. The takeover offer documents were due to be circulated on February 5, 2021.
BOC says in a notice to shareholders that there have been new developments that have an impact on the disclosures to be made in the documents, adding that further communication will be made within 14 days from Friday last week.
The industrial and medical gases manufacturer did not specify the issues holding up the circulation of the takeover documents.
A source familiar with the matter told Business Daily that the court case is what has interrupted the takeover process. The source said that the Capital Markets Authority (CMA) has asked BOC and Carbacid to wait until the court case is resolved before proceeding with the pending transaction processes.