The recently announced Kshs 1.2 Billion takeover offer of BOC Kenya Plc (NSE: BOC) by Carbacid Investments Limited (CIL) in collaboration with Aksaya Investments LLP is set to further deepen the industrial sector development in Kenya.
Speaking when he provided a progress update on the offer, CIL Chairman Amb. 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, Awori said, 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. The bid, he added also underlines the commitment of local investors in expanding manufacturing capacity.
Awori explained that following the approvals from the CIL at the CIL AGM last week, the transaction team is now set to advance the non-conditional offer closure subject to regulatory conditions. He stressed the point of the offer being unconditional, which means that those shareholders of BOC who wish to continue as shareholders can do so and benefit from the future growth of the business.
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. Mr 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.
