After the protracted acquisition has rumbled on for over two years, Carbacid Investment reportedly wants BOC Kenya to withdraw its takeover bid, to pave way for resumption of trading at the Nairobi Stock Exchange (NSE).
BOC Kenya’s takeover offer of Carbacid has been on the cards for the past 27 months after the Capital Markets Authority declined to endorse the deal, arguing that BOC Kenya had not met all required terms. Shares of the two listed gas manufacturers were suspended from trading at NSE in December 2005 accordingly, with the intention of allowing BOC to process the transaction.
As a result, shareholders of the firms have missed out on the opportunity to make capital gains from their shares – at a time when the stock market has witnessed a share price boom.
Now, Carbacid Investment is asking the CMA and BOC Kenya to withdraw the offer and make a fresh bid at a later date. The Carbacid board said in a statement, “To be fair to all shareholders, BOC Kenya and CMA should expeditiously facilitate the withdrawal of this offer to pave the way for resumption of trading at the NSE.”
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