The board of NSE-listed oil marketer KenolKobil #ticker:KENO has endorsed the proposed takeover of the firm by French company Rubis Energie.
Following the approval by the board, shareholders have until February 18 to accept or reject the offer.
“After deliberations and on the basis of independent financial advice, the directors (of KenolKobil) are recommending to the shareholders of the company that they should accept the takeover offer by Rubis Energie,” said KenolKobil chairman James Mathenge in a statement on Friday.
“The board was served with the offer document by the offeror on December 20, 2018 after they had obtained the requisite regulatory approvals. The offer subsequently opened on December 20 and will close at 5pm on February 18, 2019.”
Already owns 25pc stake
The French firm already owns a 25 per cent stake in KenolKobil (367.8 million shares), which it bought from Wells Petroleum in October 2018 at Sh15.30 per share for a total of Sh5.63 billion ahead of making the takeover bid.
The share closed at Sh19.20 in trading on Thursday at the NSE, which represents a gain of 25.5 per cent since Rubis first announced the buyout bid on October 23.
Rubis has proposed to pay Sh23 a share for the remaining 75 per cent stake, valuing the company at Sh35.7 billion.
If successful, the takeover will result in the delisting of KenolKobil from the NSE.
Rubis already operates in 12 African countries in the mid and downstream oil market, but has no presence in the Eastern and Central Africa region.