The Capital Markets Tribunal has declined to allow Carbacid and Aksaya Investments to participate in a case seeking the termination of its takeover of BOC Kenya, saying issues raised on the buyout will be articulated by sector regulator.
The tribunal said although the two firms argued that any decision will ultimately affect them, the primary impact is on the Capital Markets Authority (CMA) because it is the regulator’s action that is being challenged.
Mr Ngugi Kiuna, a former BOC Kenya chairman, challenged the takeover arguing that the regulator erred in approving the buyout by ignoring the undervaluation of BOC besides disregarding the protection of interests of minority shareholders.
Carbacid Investments Plc and Aksaya Investments LLP, a firm controlled by its major shareholder Baloobhai Patel, teamed up to offer BOC investors a buyout price of Sh63.5 per share or an aggregate of Sh1.2 billion.
“Besides, the interests of the intended interested parties are not left undefended. In seeking to defend the propriety of its procedures and processes and ultimately showing that the decision to allow the Take over Offer was done according to the relevant law and procedure, the 1st respondent (CMA) will be securing the interests of the intended interested parties,” the tribunal chaired by Paul Lilan ruled.
According to the tribunal, the interests of Carbacid and Aksaya will be articulated by the CMA who is in a position to do so.
The case, which was filed in 2021, came up for mention in July when the two firms sought to be allowed to participate in the proceedings.
