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.