[2008-08-23]  Carbacid standoff nears end
The delayed takeover of Carbacid Investment by BOC Kenya could be settled out of court, Standard on Saturday has learnt.

Capital Markets Authority (CMA) had stopped the deal because BOC Kenya required at least 80 per cent of Carbacid’s shareholders to back the takeover bid.

But with a 71 per cent approval, BOC Gases went on with other formalities to legitimise it.

However, the deal hit a snag after Alliance Nominees, a company associated in the recent past with the family of politician Kenneth Matiba, and which holds a 22 per cent stake in Carbacid, refused to endorse the takeover.

This meant that BOC Kenya could not achieve the desired 80 per cent target for the transaction to go through, without the approval of Alliance Nominees.

“We have had discussions and that (out of court settlement) is a possibility,” said BOC Kenya Managing Director Mr John Kariuki said on Friday, while announcing the firm’s half-year results.

In the deal, Carbacid shareholders were to get a cash payment of Sh25.35 for every share held and Sh30 a share in special dividend.

They were to become shareholders of BOC Kenya and one Carbacid share would qualify for 0.555 of a fully paid BOC Kenya share.

CMA also sought to block the deal arguing it was likely to set a bad precedent that would plunge future takeovers of listed companies into confusion. However, CMA tribunal challenged the market regulator decision.

On Friday, Kariuki said there was light at the end of the tunnel although “the appeal by CMA against the decision of Tribunal is yet to be heard.”

“The board appreciates shareholders and other stakeholders concern on the delayed conclusion of the transaction and looks forward to a speedy resolution,” Kariuki said.

He announced that the company’s pre-tax profit had increased to Sh183.8 million for the six months ending June 30, up from Sh182.5 recorded in.
Source: (C) 2008 THE STANDARD