The takeover of Kenyan CO2 producer Carbacid by BOC Gases Limited will now take place, after a tribunal rescinded an earlier decision by the market regulator blocking the deal.
Both companies are listed at the Nairobi Stock Exchange (NSE) and are subject to regulation by the Capital Markets Authority (CMA). Carbacid's board of directors had agreed to the takeover proposal by BOC, and was backed by 71.9 per cent of Carbacid shareholders. However, the CMA had maintained that the deal needed the approval of at least 80 per cent of the shareholders. BOC then appealed to the tribunal.
$quot;We find that this appeal succeeds,$quot; noted Morris Njage, chairman CMA Tribunal, and ordered CMA to approve the listing of the new shares of BOC after incorporating those of Carbacid. The ruling is the tribunal's second since it was first appointed in 2002 and it is the first such tribunal appointed under the CMA Act in the stock market's history.