BOC Kenya risks Sh1.2 billion buyout

March, 02, 2021 BOC Kenya has declined, collapsing ahead of an impending Sh1.2 billion buyout by Carbacid, amid a war of words after BOC made startling claims that the latter undervalued the firm.

The two competing companies have made losses and profits with BOC making a takeover bid on Carbacid 15 years back, but failed after a four-year regulatory battle.

BOC was then forced to return share certificates it acquired from shareholders of Carbacid. BOC is a supplier of industrial, medical and special gases, while Carbacid produces food-grade carbon dioxide that is used in fizzy drinks.

Both firms control the largest market shares in their respective areas. BOC has seen a peak in business, with oxygen currently in high demand in the fight against Covid-19.

Last month, the BOC Kenya Board refused to recommend the offer for acceptance by shareholders, citing the opinion of an independent financial adviser. Dyer and Blair put the “fair” value of BOC at Sh91.76 billion, which is 44.5 per cent higher than the offer price.

“As the fair value is below the offer price, the offer price is not considered to be fair and reasonable,” said Dyer and Blair. This has fired up the board and some minority shareholders. The board, however, noted that the offer was not conditional to the conclusion of the deal.

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