At Ksh 23 per share, Rubis’ takeover offer would value KenolKobil at USD353 million – Rubis SCA
French fuel storage and distribution company Rubis SCA has announced its takeover bid for Kenyan oil marketer KenolKobil Ltd.
Rubis, a downstream fuel industry specialist in fuel retailing, support and services including refining, shipping, supply, and terminal operations with operations in 35 countries across Europe, the Caribbean, Africa, and the Indian Ocean seeks to buy out the remaining shares for KSh23.4 billion.
It currently owns 24.99% percent (367,793,124 shares) at Ksh 15.30 held by Wells Petroleum.
KenolKobil has 1,471,761,200 issued and listed shares (75.01% ).
Christian Cochet Chief Executive Officer, Rubis Energie, and Bruno Krief, Chief Financial Officer & Head of Investor Relations at Rubis SCA On Tuesday, said they will announce the company’s “Planned expansion into East Africa.”
“Rubis is announcing this day its intention to make a public offer to purchase all of the remaining share capital of KenolKobil in accordance with the rules of the Nairobi Securities Exchange and the Kenyan Capital Markets Act, and other applicable laws and regulations,” read a statement.
According to Rubis, “At Ksh 23 per share, Rubis’ takeover offer would value KenolKobil at USD353 million. This acquisition, financed by the Group’s available cash and/or from existing credit facilities, would be immediately accretive. Completion of a takeover offer would be subject to the receipt of all regulatory approvals, including national and regional competition authorities and other regulators.”
The offer will be open until 30th July 2019 at 5.00pm. Rubis requires at least 75% of the shares of KenolKobil so as to take steps towards delisting Kenol.
“In our view, the offer is a highly attractive proposition at the offer price of Ksh 23.00. Trading history indicates that market price has never been above Ksh 20. In our analysis, we noted some sluggishness in bottom line growth, with margin compression a key factor. In light of this, we valued KenolKobil Plc at Ksh 16.33. At the offer price, we recommend shareholders to tender their shares or sell to market at a price close to the offer price,” Genghis Capital Analysts note.
Reuters Africa reported that David Ohana KenolKobil’s chief executive officer said the 24.9 percent purchase of its stake was a “done deal”.