In a strategic move to solidify his position as a prominent investor on the Nairobi Securities Exchange, Kenyan businessman Ngugi Kiuna has acquired an additional stake in Nairobi-based gas manufacturer BOC Kenya.
The latest purchase, detailed in the company’s recently published annual report for the fiscal year ending in March 2023, demonstrates Kiuna’s commitment to strengthening his influence within the company.
According to the report, Kiuna purchased an additional 93,826 shares in BOC Kenya, amounting to a value of Ksh7.2 million ($63,400).
This acquisition elevates his stake in the gas manufacturer from 8.08 percent to 8.56 percent, following his previous purchase of 93,000 ordinary shares worth Ksh6.9 million ($59,000) last year. These transactions reflect Kiuna’s determination to establish himself as a substantial shareholder in the company.
Kiuna, the founder of Maxam Limited, an alcoholic beverage distribution company based in Nairobi, is a former chairman of the Kenyan gas manufacturer BOC Kenya.
His recent acquisitions in BOC Kenya shares align perfectly with his opposition to the proposed takeover of the Kenyan gas manufacturer by Kenyan multimillionaire businessman Baloobhai Patel and his Nairobi-based investment holding company, Carbacid Investments Plc.
With his present stake inching closer to 10 percent, it is crucial to note that Kiuna possessing a 10-percent stake in BOC Kenya grants him the power to block the delisting of the Nairobi Securities Exchange-listed firm, as per Kenya’s capital markets regulations.
Despite the regulatory roadblocks set forth by Kiuna to contest the buyout, which he claims “undervalues the Nairobi Securities Exchange-listed firm,” Carbacid remains resolute in its bid to acquire a controlling 65.38-percent stake in BOC Kenya.
The proposed deal, valued at Ksh1.2 billion ($10.6 million), aims to diversify Carbacid’s portfolio in Kenya.
