BOC Kenya is bidding for an effective control of Carbacid Investments, a liquefied carbon dioxide manufacturer.

According to The EastAfrican, a $18.9 million compensation package awaits shareholders of Carbacid Investments who agree to sell their shares to BOC Kenya.

Under a proposal filed with the Kenya Capital Markets Authority, the shareholders will earn a special dividend of Ksh320 million ($4.3 million) at a rate of Ksh30 per share and pocket another Ksh251.2 million ($3.4 million) \\$quot;“ Ksh23.55 per share \\$quot;“ in cash payment for their equity.

The newspaper further explains that shareholders will also benefit from new shareholding in BOC Kenya with two Carbacid shares yielding slightly more than one BOC share (one Carbacid unit will yield a 0.555 unit in BOC Kenya).

BOC Kenya needs to raise a fifth of the amount in cash because the bulk of the compensation will be through the equity swap. It is not clear whether BOC Kenya will finance the cash payment through its own resources or through borrowing.