Tribunal Backs BOC Takeover of Carbacid

The takeover of Carbacid by BOC Gases Limited will now take place, after a tribunal rescinded an earlier decision by the market regulator blocking the deal.

Both companies are listed at the Nairobi Stock Exchange (NSE) and are subject to regulation by the Capital Markets Authority (CMA).

Carbacid's board of directors had agreed to the takeover proposal by BOC, and was backed by 71.9 per cent of Carbacid shareholders.

CMA had maintained that the deal needed the approval of at least 80 per cent of the shareholders. BOC then appealed to the tribunal.

"We find that this appeal succeeds," noted Morris Njage, chairman CMA Tribunal, and ordered CMA to approve the listing of the new shares of BOC after incorporating those of Carbacid.

The ruling is the tribunal's second since it was first appointed in 2002.

It is also the first such tribunal ever appointed under the CMA Act in the stock market's history.

Other members of the tribunal are KCB managing director Terry Davidson, Michael Waweru and Nelson Kaburu, a lawyer.

Ms Pauline Nyaweya, a lawyer and lecturer at the Law School, University of Nairobi is the secretary.

The first time the tribunal sat was in 2002 to listen to an appeal raised by Shah Munge & Partners, a brokerage firm against its suspension from trading at the stock exchange over its involvement in the transfer and subsequent loss of Sh251 million NSSF money.

The tribunal enhanced the ruling from 30 days suspension to three years.