24 October 2018

Kenya: French Company to Acquire Kenol Kobil

Kenya — French fuel marketing and distribution company Rubis Energie has announced its intention to acquire Kenol Kobil Kenya.

Rubis Energie has proposed a take-over offer of 75.01 percent of the issued ordinary shares of KenolKobil which will see the company delist from the Nairobi Securities Exchange.

The proposed offer price is at Sh23, a 50.3 percent premium to Tuesday's closing price of Sh15.30.

NSE Chief Executive Geoffrey Odundo says the bid and subsequent delisting shows the markets' vibrancy which is an attractive feature for investors.

"I think the company is delisting for positive reasons such as change of strategy, change of business model and capital ownership. The Kenyan market is also very attractive to investors," Odundo sad.

Analysts at Genghis Capital say the offer of Sh23 is attractive considering the share price has never gone beyond Sh20.

"In our analysis, we noted some sluggishness in bottomline growth, with margin compression a key factor. Considering this, we valued KenolKobil Plc at Sh16.33. At the offer price, we recommend shareholders to tender their shares or sell to market at a price close to the offer price."

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