Gas vendor Carbacid Investments has shrugged off the controversy of a proposed takeover by BOC Kenya to record a healthy 54 per cent growth in half-year after tax profit.
Results show the carbon dioxide manufacturer made Sh97.8m ($1.4m) in the period concluding January 31 compared to an earlier Sh63.5m ($0.9m). The proposed absorption of the firm by BOC was embargoed by the Capital Markets Authority, which forced an indefinite suspension on trading. An independent arbitrator, Capital Markets Tribunal, has consequently ruled that the marriage is regular, but the CMA has since stated it will move to the High Court to quash the ruling.
$quot;It is understood that Capital Markets Authority is studying the implications of the award on the Capital Markets Regulations with a view to determining the way forward,$quot; wrote Carbacid company secretary NP Kothari.
The market regulator latterly justified its decision to seek High Court ruling saying, $quot;The CMA has a mandate to promote, regulate and facilitate the development of an orderly, fairly and efficient capital markets in Kenya and must therefore ensure that precedents set by its own actions and those of the Tribunal do not unfairly prejudice the long term viability of the Kenya capital markets or impair its regulatory capacity.$quot;