BOC Kenya Board has failed to issue an opinion on whether or not to accept the Carbacid takeover bid.
This is even after Dyer and Blair Investment Bank, hired by the BOC Board to toothcomb the KSh 1.2 Billion Carbacid takeover bid, returned with the verdict that this price is below the firm’s actual value.
BOC Kenya Board sits on the sidelines
The transaction adviser said Carbacid’s offer to buy BOC Kenya at KSh63.5 per share undervalues BOC Kenya by 30.8%. Dyer and Blair place BOC Kenya’s value at KSh 91.76 per share or worth a total of KSh 1.7 Billion. Carbacid had placed a bid of KSh 1.2 Billion.
BOC Board says it will not advise the firm’s shareholders whether or not to sell their shares to Carbacid.
“Having carefully considered the opinion of the independent adviser … the board unanimously agrees that the price of Sh63.5 does not reflect a fair value of the company,” BOC says in a circular to shareholders.
Therefore, shareholders are encouraged to obtain independent professional advice from their professional advisers regarding the merits of accepting or not accepting the offer.
BOC Kenya Limited, a leading supplier of medical gases, has a wide range of clients.
They include public and private hospitals, food processors, civil and mechanical engineering contractors, motor vehicle body builders, hotels and restaurants, the informal business sector, and small and medium enterprises.
Its product range includes bulk gases such as Oxygen, Nitrogen and liquefied petroleum gas (LPG), packaged (cylinder) gases and engineering services (Medical equipment, Construction of medical and other gas pipelines, as well as Gas storage tanks.
The share price of BOC Kenya Limited (BOC) is currently oscillating around KSh 59.00.
It closed trading this Monday, February 22, 2021, at KSh59.00 per share on the Nairobi Securities Exchange, recording a 1.72% gain over its previous closing price of KSh58.00.
Baloobhai Chhotabhai Patel
The proposed takeover of BOC Kenya by Billionaire Baloobhai Chhotabhai Patel, who owns a considerable stake in Carbacid, has triggered an enormous investor interest on the counters of both the listed firms.
This is as investors react to news about the intended takeover by Carbacid Investments Plc & Aksaya Investments Plc. Aksaya- is an investment vehicle owned jointly by Baloobhai Chhotabhai Patel and his wife, Amarjeet Baloobhai Patel.
The couple also owns 40.38% of Carbacid Investments Plc. The wealthy Asian family also has stakes in the Co-operative Bank of Kenya and Pan African Insurance, and several unlisted firms.
BOC Holdings, which own 65.38% of BOC Kenya, has undertaken to accept Patel’s offer, based on agreements set by both parties before the end of July this year.
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