How bonds, taxes can fund Kenya’s universal healthcare coverage

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

Rubis Energie is on course to take-over KenolKobil and delist it from Nairobi bourse after shareholders with 96.85 per cent stake agreed to offload their shares to the French multinational.

Rubis announced on Friday that their bid to acquire 1.182 billion ordinary shares received
overwhelming positive response by shareholders, making it possible to increase its stake to 97.6 per cent and compulsorily buy out remaining stake.

“Following the reconciliation of the forms of acceptance received, KenoKobil’s shareholders holding 1.145 billion ordinary shares in Kenokobil had tendered their forms of acceptance by 18 February, 2019,” Rubis said.

“This represents 96.85 per cent of the 1.182 billion shares not already owned by Rubis Energie. Upon completion of transfer of these shares, Rubis Energie will hold 1.51 billon ordinary shares comprising 97.6 per cent of total issued share capital of KenolKobil.”

The success rate, amidst insider trading allegations that saw Capital Markets Authority (CMA) open investigations into events preceding the deal, sets KenoKobil on course for delisting from Nairobi Securities Exchange (NSE).

The multinational says that it will now move to de-list the oil marketer from NSE, having received acceptances that will see its stake rise above 75 per cent- the minimum it had set to initiate delisting.

Regulatory approvals

“Rubis shall in due course initiate a process to obtain the requisite shareholder and regulatory approvals required to delist KenolKobil‘s share from NSE,” said the firm.

CMA has so far granted Rubis all approvals to complete the transfer of shares, a process Rubis said has commenced. This will see shareholders pocket Sh26.35 billion, having accepted offer price of Sh23 per share.

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.

The firm says it will move to compulsorily acquire the remaining 37.21 million shares whose owners did not participate in the offer.

“Such compulsory acquisition will be made at the offer price of Sh23 per share and on completion of this process, Rubis Energie will own 100 per cent of the issued share capital,” says Rubis.

In the meantime, it has applied to the CMA to extend suspension of trading of kenolKobil’s shares until the squeeze out of the remaining shareholders is completed.

The imminent exit of KenolKobil will make it seven de-listings in under 10 years amid listing drought on Nairobi bourse.

Other de-listings include Unilever Kenya (2008), Access Kenya (2013), Rea Vipingo (2015), Marshall East Africa, Hutchings Biemer and A Baumann in 2017.