Insider trading suspects led by Aly-Khan Satchu will have to forgo the amount they were to gain in Kenolkobil takeover deal, the Capital Markets Authority (CMA) has announced.
CMA announced that the suspects were set to pocket an estimated Ksh458 million in the Ksh26 billion takeover by French firm Rubis Energie.
In a statement, CMA said that the cash is contained in 14 accounts that were involved in dubious transactions last year at the commencement of the takeover deal.
“The funds surrendered to date relate to 90 percent of the quantum of suspicious trades identified… The recovered funds will be paid into the Investor Compensation Fund. Upon review of the investigation findings and recommendations, the CMA Board has resolved to initiate enforcement proceedings against the Kestrel Capital executive director Andre DeSimone, Kestrel Capital chairman and founder, Charles Field-Marsham, and their stockbroking agent, Aly-Khan Satchu, through issuing Notices to Show Cause,” read the statement.
In the investigations, East Africa Data Handlers (EADH) conducted forensic analysis of phone communications between Aly Khan Satchu, Kestrel Capital CEO (Andre De Simone), Kenol Kobil CEO David Ohana and their associates, concluding that the previous two engaged in insider trading of Kenol Kobil shares.
Through the communication, Aly Khan Satchu and Kestrel Capital CEO agreed to split the profits from the sale of Kenol Kobil shares to Rubis Energy. Through the sale, more than Ksh500 million was going to be earned as profit which the two were going to split in half.
Court submissions indicate that CMA raided the premises of Aly Khan Satchu (Mirage Office Park), Kestrel CEO Andre De Simone (Orbit Place) and David Ohana (5th Avenue Kilimani) and obtained evidence from analysis of WhatsApp and email communications between Aly Khan Satchu and Andre De Simone.
Business Daily reports that Rubis Energie has started making payments to KenolKobil shareholders who have accepted its buyout offer, moving the firm nearer to closing the deal and delisting from the Nairobi Securities Exchange.
Rubis announced on Friday that shareholders owning 1.145 billion shares in the oil marketer — equivalent to 96.85 percent of the units not already held by the French firm — had agreed to sell their stock at Kshh23 a share.