Court vacancies hamper Kenyan tycoon Baloobhai Patel’s $10.6-million acquisition deal via Carbacid Investments

Vacancies at a special court in Nairobi have slowed down Kenyan company Carbacid Investments Plc’s $10.6-million deal to take over the operations of the gas manufacturer, BOC Kenya.

Carbacid Investments Limited is a Kenyan investment holding. It maintains active operations in carbon dioxide gas production, processing and marketing through its primary operating subsidiary, Carbacid (CO2) Limited.

The company is linked to Kenyan tycoon Baloobhai Patel, who increased his ownership stake in the Nairobi-based investment company to 49.9 percent.

Earlier this year, alongside Aksaya, an investment firm, the holding launched a multimillion-dollar takeover bid to acquire BOC Kenya in an attempt to broaden its portfolio on the Kenyan market.

However, the bid was suspended by regulatory authorities following a legal action by former BOC Chairman Ngugi Kiuna, who argued that the company undervalued its target in the deal.

Aside from these issues, Business Daily reported that a lack of proceedings at the Capital Markets Tribunal is the current reason for the lack of any significant movement in the case.

“The tribunal has not been quorate, and therefore it can’t hear the matter. The tribunal secretary and another member must be appointed by the Judicial Service Commission (JSC) following the decision of the High Court in consideration of petition 197 of 2018,” the regulator said in a note.

Meanwhile, Carbacid Chairman Dennis Awori recently told shareholders that the company is still keen on pursuing its proposed buyout of BOC Kenya.

BOC’s majority shareholder, BOC Holdings, committed to sell its 65.38-percent stake to Carbacid and Aksaya. Its minority shareholders were to decide whether to take or reject the offer.

Mfonobong Nsehe
Mfonobong Nsehehttp://Billionaires.Africa
With over a decade of experience creating impactful narratives about Africa, Mfonobong Nsehe is one of the most recognized journalism and communications professionals on the continent. He is the editor-in-chief of Billionaires.Africa. A former Forbes Magazine contributor covering African wealth and entrepreneurship, Mfonobong conceptualized, initiated, and managed for a decade the Forbes annual ranking of Africa’s richest people. He was also the pioneer managing editor of Ventures Africa and built it into one of the continent’s most influential business news companies.

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