The takeover of KenoKobil by Rubis Energie hits a snag

A bid by Rubis Energie, to acquire 100 percent of Kenolkobil has hit a stumbling block with Kenya’s Capital Market Authority after it launched investigations into alleged irregular shares trade on Wednesday.
CMA said its market surveillance had identified potentially irregular trading of KenolKobil shares in the run-up to the Rubis bid announcement in which it had acquired 367,793,124 ordinary shares at a market price of Ksh 15.30 per share.
“Consequently, in connection with these investigations the Authority has instructed the Central Depository and Settlement Corporation to place a freeze on the suspected accounts to allow for the conduct of the necessary inquiries,” the regulator said in a statement.
“In conducting its review of the ongoing takeover transaction the Authority will have due regard to the maintenance of the integrity of the market and protection of investors’ interests,” reads part of the release.
On Wednesday, the equity turnover fell 94.52% to Ksh 331.8Mn compared to Ksh 6.04Bn on Tuesday at the Nairobi Securities Exchange attributed to a book over that traded on KenolKobil.
KenolKobil shares closed at Ksh15.85 after surging 31 percent to a record high of Ksh 21.75.
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.