Carbacid Investments looks to acquire Kenyan tycoon Ngugi Kiuna’s BOC Kenya

Nairobi-based manufacturing and investment company Carbacid Investments Plc (Carbacid) has remained resolute in its bid to acquire the Kenya-based gas manufacturer BOC Kenya in a deal that is expected to be concluded at a valuation of Ksh1.2 billion ($10.6 million).

Carbacid Investments Limited is an investment holding, with core operations in carbon dioxide gas production, processing and marketing through its main operating subsidiary, Carbacid (CO2) Limited.

Earlier this year, the investment holding launched a multimillion-dollar takeover bid to acquire BOC Kenya in an attempt to broaden its portfolio in the Kenyan market. The bid was suspended by regulatory authorities following legal action by BOC’s former chairman, Ngugi Kiuna.

In response to the takeover bid, Kiuna, who holds a 7.6-percent stake in BOC Kenya, filed an appeal with the Capital Markets Tribunal, objecting to the buyout that he says “undervalues the Nairobi Securities Exchange-listed firm.”

As a result of the court action, the deal’s completion is now pegged for 2022. Due to legal and regulatory roadblocks, the finalization of the transaction has now taken more than one year.

Information gathered by Billionaires.Africa revealed that Carbacid is keen to speed up the hearings at the Capital Markets Tribunal and the High Court to resolve the suspension placed on the takeover bid, and as a result, the bid might happen in 2022.

The recent decision to speed up the acquisition despite regulatory delays comes nearly two months after Kenyan multimillionaire businessman Baloobhai Patel increased his ownership stake in the Nairobi-based investment holding to 49.9 percent.

Patel, who is the largest substantial shareholder in the investment holding, acquired an additional 9.52-percent stake in the company between June 30, 2020 and June 30, 2021, according to recent figures published in its annual report.

The share acquisition increased his stake in Carbacid Investments from 40.38 percent in 2020 to 49.9 percent, or 127,172,592 ordinary shares.

As of press time, shares in the investment holding were trading at Ksh10.85 ($0.096), 46-basis points higher than their opening price this morning, Dec. 20.

At this price, Carbacid is valued at Ksh2.75 billion ($24.3 million), while Patel’s stake is valued at Ksh1.38 billion ($12.2 million).