KenolKobil shareholders approve 97%  takeover bid by French firm

KENYA – Shareholders at KenolKobil Limited, a pan African downstream oil company, have agreed to offload 96.85 per cent stake of their shares to the French multinational Rubis Energie.

Rubis had earlier on expressed optimism on the 1.182 billion ordinary shares take over bid, making it possible to increase its stake to 97.6 per cent and subsequently into a compulsory buy out remaining stake.

“Following the reconciliation of the forms of acceptance received, KenoKobil’s shareholders holding 1.145 billionordinary shares in Kenokobil had tendered their forms of acceptance by 18 February, 2019.

“This represents 96.85 per cent of the 1.182 billion shares not already owned by Rubis Energie.

Upon completion of transfer of these shares, Rubis Energie will hold 1.51 billon ordinary shares comprising 97.6 per cent of total issued share capital of KenolKobil,” Rubis said.

The approval comes amidst insider trading allegations that saw Capital Markets Authority (CMA) open investigations into events preceding the deal, sets KenoKobil on course for delisting from Nairobi Securities Exchange (NSE).

Rubis said that it will now move to de-list the oil marketer from NSE, having received acceptances that will see its stake rise above 75 per cent- the minimum it had set to initiate delisting.

“Rubis shall in due course initiate a process to obtain the requisite shareholder and regulatory approvals required to delist KenolKobil‘s share from NSE,” said the firm.

Currently, the transaction has seen CMA grant Rubis approvals to complete the transfer of shares which will see shareholders pocket US$262.97 million, having accepted offer price of Sh23 (US$0.23)per share.

Rubis initially bought 367.7 million shares or a 23.72 percent stake in KenolKobil in the open market on October 23, 2018 and thereafter made an offer to buy the rest of the shares.

The firm says it will move to compulsorily acquire the remaining 37.21 million shares whose owners did not participate in the offer.

“Such compulsory acquisition will be made at the offer price of Sh23 (US$0.23) per share and on completion of this process, Rubis Energie will own 100 per cent of the issued share capital,” says Rubis.

Rubis has already has applied to the CMA to extend suspension of trading of kenolKobil’s shares until the squeeze out of the remaining shareholders is completed.

News Reporter

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