The vacancies at the Capital Markets Tribunal are yet to be filled, stalling buyouts of public firms and other transactions that have been opposed at the judicial body.
One of the matters stuck at the tribunal is the proposed buyout of BOC Kenya by Carbacid Investments and investment firm Aksaya which was first announced in November 2020.
The vacancies at the Capital Markets Tribunal are yet to be filled, stalling buyouts of public firms and other transactions that have been opposed at the judicial body.
The Business Daily has learned that the Judicial Service Commission (JSC) is yet to appoint a secretary and another member.
One of the matters stuck at the tribunal is the proposed buyout of BOC Kenya #ticker:BOC by Carbacid Investments and investment firm Aksaya which was first announced in November 2020.
Others include enforcement actions against individuals accused of insider trading who filed objections to the Capital Markets Authority’s (CMA) decisions at the tribunal.
BOC Kenya’s minority shareholder Ngugi Kiuna made an application at the tribunal, opposing the transaction which he said undervalued the target company with the offer of Sh1.2 billion or Sh63.5 per share.
The CMA said stakeholders will have to wait for the JSC, an independent body, to take action.
The regulator noted that previously, the Cabinet Secretary for National Treasury and Planning (a member of the Executive arm of government) would appoint tribunal members.
The High Court later said members of the Executive should not appoint tribunal members and that this was the responsibility of the JSC.
Carbacid has said it is still interested in acquiring BOC Kenya despite the delay.
The impasse at the tribunal has seen the companies continue to operate independently, with BOC shareholders earning higher dividend payouts amid improved profitability.
The medical and industrial gases manufacturer grew its net profit 6.5 percent to Sh108.3 million in the year ended December, helped by higher sales.
It declared a final dividend of Sh2.9 per share, raising the total payout to Sh4.4 per share. It had paid a dividend of Sh4.15 for the previous year.
The stalled transaction marks the latest twist in the history of the two Nairobi Securities Exchange-listed firms.
Carbacid was itself a takeover target of BOC in 2005 but the proposed deal collapsed in October 2009 on regulatory roadblocks.
