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KenolKobil share sale pledges now hit 50 percent

KenolKobil petrol station
A worker adjusts fuel prices at a KenolKobil petrol station in Eldoret Town in the past. FILE PHOTO | NMG 

KenolKobil shareholders have so far committed to sell shares amounting to a total of a 50.04 percent stake, satisfying a critical condition set by French multinational Rubis Energie for its buyout of the oil marketer to proceed.

Rubis initially bought 367.7 million shares or a 23.72 percent stake in KenolKobil in the open market on October 23, 2018 and thereafter made an offer to buy the rest of the shares at a price of Sh23 per share.

The offer closes on Monday next week and, as of Wednesday, shareholders had tendered 408.2 million shares equivalent to a 26.32 percent stake, according to sources involved in the transaction process. This raises Rubis’ total interest in the oil market so far to 776 million shares or a 50.04 percent equity.

The conglomerate said it would only proceed with the Sh35.6 billion buyout if it receives acceptances that will raise its aggregate ownership in KenolKobil to 50 per cent plus one share.

“As at February 13, 2019, the transaction advisory team had already received acceptances that mean that Rubis Énergie should hold more than 50.05 of KenolKobil’s issued shares at the close of the transaction,” a source involved in the deal told Business Daily.

The transaction advisory team continues to receive more forms of acceptance in the few remaining days when a large volume of shares needs to be tendered if Rubis is to achieve its goal of de-listing KenolKobil from the Nairobi Securities Exchange (NSE).

The multinational said that it would move to de-list the oil marketer once it receives acceptances that will increase its stake to at least 75 percent. Such a motion will, however, only succeed if investors with a 10 percent equity or more do not vote against it.

If Rubis’ stake hits 90 percent, it will be in a position to unilaterally buy the remaining shares and take KenolKobil private.

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