The tussle between the Capital Markets Authority and British Oxygen Company (BOC) Kenya over the latter's merger with Carbacid Investments Limited seems unlikely to end soon.
BOC Managing Director John Kariuki said this week the tribunal had reversed the decision of the CMA that stopped the conclusion of the transaction forcing the CMA to move to the High Court.
$quot;You are fully aware that on the 16th of March we won the appeal at the tribunal, but CMA has opted to appeal to the High court and CMA has issued a public notice confirming that they will do everything possible to ensure that there is an early resolution of this matter,$quot; said Kariuki.
He said the company is now awaiting the outcome of the appeal to know the way forward. BOC Kenya made clear its intention to acquire effective control of Carbacid Investment Company on the 1st of December 2005.
In the meantime the gas manufacturing company has announced a 10.5 percent increase in profit after tax for the year ended 31st March 2007. Kariuki said revenue increased by 12 percent over the same period last year.
He attributed the performance to improved economic activity, with key drivers being agriculture, tourism, transport and communication sectors of the economy.
Kariuki said the operating profit grew by 10 percent over last year against a background of a rapid escalation of input costs, especially in the first quarter, attributed to increase in steel prices, power as well as distribution costs.
He said these costs have however, been mitigated by the significant effect of ongoing implementation of operational efficiency initiatives including price management.