Carbacid Investments Limited (CIL) in partnership with Aksaya Investments LLP have moved a step further with the intended offer to acquire BOC Kenya Plc, a leading supplier of industrial, medical and special gases in East Africa.
The two entities have escalated the acquisition process by fulfilling their legal obligation to serve on BOC an Offeror’s Statement.
In response to the service and in compliance with the Capital Markets Regulations governing takeovers and mergers for listed firms in Kenya, BOC Kenya PLC has published the Offeror’s Statement acknowledging the intention by CIL and Aksaya Investments LLP to acquire up to 100 percent of its ordinary shares.
The statement issued by BOC Kenya indicates that CIL and Aksaya Investments LLP are confident of BOC Kenya’s business prospects and are seeking to acquire the firm as part of a long-term investment strategy.
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.
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“The Offerors acknowledge the changes in the performance of the business; however they believe in the underlying long term prospects of BOC’s business and product offerings and therefore have confidence in making this offer,” the Offeror’s Statement explains.
Among other elements, the Offeror’s Statement also confirms that at the close of the takeover deal, the existing contractual and statutory employment rights of all BOC Kenya employees will continue to be in force in accordance with the law.
CIL Chairperson Amb. Dennis Awori recently confirmed that BOC Kenya’s United Kingdom-based majority shareholder, BOC Holdings supports the intended offer and has issued an irrevocable undertaking to sell its 65.38 percent stake in BOC Kenya.
Awori further explained that the proposed acquisition of BOC Kenya by CIL and Aksaya is an excellent match that will, in the longer term, position the enlarged group to become the leading regional supplier of choice for carbon dioxide gas and related products, industrial, medical and special gases, and related equipment and services.