Carbacid remains glued to BOC Kenya acquisition offer
By John Otini, March 21, 2022Gas manufacturer Carbacid Investments is keen to acquire BOC Kenya despite the suspension of a takeover bid after two shareholders contested the matter in court.
The court case that hit the headlines at the peak of the Covid pandemic has not swayed Carbacid’s appetite for the firm. “Carbacid Investments Plc is still interested in purchasing the shares of BOC Kenya Plc. However, the process has been delayed by objections from the Capital Markets Authority and the High Court by two of BOC’s shareholders,” Carbacid said in a statement.
BOC deals in the production of medical and industrial gases, while Carbacid has a carbon dioxide business catering to producers of fizzy drinks. If successful the takeover transaction will result in the largest combined industrial gases business, bringing together Carbacid’s carbon dioxide operation, and BOC’s oxygen and other gas products.
Carbacid which is in it for a 100 per cent takeover says the move has been delayed for a year, amid fears it may collapse if the impasse continues. The manufacturer has announced a profit of Sh360 million for six months to December compared to Sh210 million during the same period in the previous year.
Last year, it made net profit of Sh415 million in the year ending July 2021, in a 28 per cent surge from Sh324 million last year. The takeover will see Cabacid get bigger share of the market that has been boosted by the Covid pandemic that sent demand for oxygen spiralling.