Carbacid Investments PLC’s (CIL) shareholders have approved the acquisition of up to 100 percent of the shareholding of BOC Kenya Plc (BOC) pursuant to the offer that was announced in November 2020. The proposal was voted upon and approved at CIL’s 49th annual general meeting of the shareholders (AGM).
On November 25, 2020, CIL and Aksaya Investment LLP as Co-Offerors notified BOC of their intention to make a joint takeover offer to acquire up to 100 percent of the shares of BOC, being 19,525,446 ordinary shares with a par value of Ksh5 for a cash consideration of Ksh63.50 per share (Offer).
The proposed acquisition, valued at just over Ksh1.2 billion, is subject to regulatory approvals and is part of CIL’s diversification and growth plan.
With a shareholder base of more than 3000 investors, delegates attending the AGM overwhelmingly voted (90.3 percent) in favour of the proposed acquisition.
“This acquisition is part of our diversification strategy and the combination of BOC’s product portfolio and services with our business is an excellent match that will position us to become a leading regional supplier of choice for industrial, medical and special gases and related equipment and services,” CIL Chairman Amb. Dennis Awori said during the AGM.
While BOC produces and supplies industrial, medical and special gases, CIL’s main operating subsidiary Carbacid (CO2) Limited is the region’s leading producer of natural food-grade carbon dioxide extracted from natural underground reservoirs in Kenya.
The Co-Offerors have already secured an irrevocable undertaking from BOC’s single largest shareholder, United Kingdom-based BOC Holdings, (which holds 12,765,582 ordinary shares in BOC, constituting 65.38 percent of the issued and fully paid-up share capital of BOC) to sell the BOC Holdings shares to the Co-Offerors.
During the AGM, CIL’s shareholders also approved the recommendation by the Board of Directors of a final dividend of Ksh0.70 per ordinary share making a total dividend payout of Ksh178 million in respect of the financial year ended July 31, 2020. T
The final dividend of Ksh0.70 will be paid on or before February 5, 2021 to shareholders on the register of CIL as at the close of business on January 9, 2021.
The CIL Board of Directors assured shareholders that the company’s future outlook remains very positive, driven by strong investor confidence and the proposed acquisition of BOC.