The long-awaited takeover of BOC Kenya PLC, a subsidiary of global industrial gases giant Linde, by Carbacid Investments PLC and Aksaya Investments LLP has officially collapsed, marking the end of a four-year saga filled with legal battles and regulatory hurdles.
The deal, initially announced in January 2021, faced immediate turbulence when it was suspended just two months later following a legal challenge. The dispute stemmed from an appeal filed at the Capital Markets Tribunal (CMT) by Kuna Ngugi Kuna, a case that would go on to delay the transaction for more than three years.
The appeal, CMT Appeal No. 2 of 2021: Kuna Ngugi Kuna v Capital Markets Authority & 2 Others, cast a shadow over the deal, creating uncertainty for shareholders and the companies involved. It wasn’t until 29 August 2024 that the Tribunal finally dismissed the appeal.
While the Tribunal’s ruling appeared to clear the path for the takeover’s completion, Carbacid and Aksaya ultimately concluded that the stipulated conditions had not been met within the required timelines, rendering the offer void.
While this announcement finally brings clarity, it also brings disappointment, as all prior acceptances of the takeover bid have been nullified. Investors are advised to take note of the development and exercise caution when trading shares, signalling potential volatility in the stock’s performance in the coming days.
Furthermore, BOC Kenya, which remains a key player in Kenya’s industrial sector, has sought to reassure stakeholders, by promising to focus and stay committed to driving business growth and profitability.
This case serves as a cautionary tale about the risks of protracted litigation and shifting deal timelines. As a result, it is likely to influence how future takeover bids are structured.
Companies are expected to start imposing stricter deadlines for regulatory approvals and other conditions to avoid similar pitfalls.
