Kirubi receives Sh206m more in BIC buyout deal

Businessman Chris Kirubi. PHOTO | DIANA NGILA  

By VICTOR JUMA
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Summary

• Mr Kirubi, through his manufacturing unit Haco Industries Kenya Limited, was paid an initial €6.3 million (Sh719 million) in the deal, which was completed last year.
• Société BIC later announced that Haco is entitled to an additional deferred payment amounting to €9.9 million (Sh1.1 billion) over three years, raising the total compensation to Sh1.8 billion.
• Once all the payments are in, Mr Kirubi’s profit in the deal will stand at about Sh611 million, representing the premium on the value of assets transferred to the French multinational.

Businessman Chris Kirubi has received an additional Sh206 million as part of his staggered payment following his sale of the BIC stationery, lighters and shavers franchise to French conglomerate Société BIC, which owns the brand.

Mr Kirubi, through his manufacturing unit Haco Industries Kenya Limited, was paid an initial €6.3 million (Sh719 million) in the deal, which was completed last year.

Société BIC later announced that Haco is entitled to an additional deferred payment amounting to €9.9 million (Sh1.1 billion) over three years, raising the total compensation to Sh1.8 billion.

The multinational has started paying the extra amount, disclosing that it paid Haco Sh206 million in the half-year ended June.

“End of 2018, the transfer of Haco Industries Kenya Ltd stationery manufacturing and distribution to BIC was completed … 1.8 million euros (Sh206 million) were paid during the first half of 2019,” BIC said in a trading update.

Once all the payments are in, Mr Kirubi’s profit in the deal will stand at about Sh611 million, representing the premium on the value of assets transferred to the French multinational.

The businessman recently told Business Daily that the deferred payment is due to the capital commitments Haco had made in the BIC business by the time the transaction was completed on December 31, 2018.

Société BIC took over manufacturing facilities in Kenya and distribution of stationery, lighters, and shavers in East Africa, with Haco retaining ownership of the properties which it has leased to the French firm.

“The deferred payment will compensate Haco for its investment in BIC including inventory and raw materials being imported,” Mr Kirubi said.