BOC Kenya expects its recent takeover of Carbacid Investments to strengthen its regional presence and profitability.
The company\\$quot;s managing director, John Kamau, told the Kenyan-based The Standard newspaper that the company\\$quot;s profitability streak would be maintained after the deal is completed.
He said: 'The takeover will deliver better earnings due to a diversified portfolio of products and the benefits of a strong regional presence. The deal will enable BOC to strengthen its regional presence as the company would embark on a major growth strategy.'
BOC Kenya is seeking to takeover the operations of Carbacid whose interests range from mining to supply of carbon dioxide gas.
According to the Standard the company expects the takeover to increase the company\\$quot;s asset base to Sh2.4 billion. Currently, BOC Kenya\\$quot;s total assets are in excess of Sh1.5 billion.
Under the takeover agreement, Carbacid shareholders will get a cash payment of Sh25.35 for every offer share held and an allotment of 0.555 of a fully paid new BOC Kenya share.
The offer, which has been approved by the Capital Markets Authority, opened on February 21 and will close on April 4.
BOC Kenya\\$quot;s chairman Joe Kibe says they want to broaden the product offering, increase productivity, enhance operational efficiencies and reduce overheads in order to achieve substantial improvement in earnings.
The company\\$quot;s intention is to continue carrying out the principal business of Carbacid even though it will continue operating as a separate unit within the enlarged BOC Kenya Group.
In the last financial year, BOC Kenya posted a net profit of Sh207.4 million, which was a 30 per cent increase over the previous year.