KenolKobil To Be Delisted From NSE If Rubis SCA Takes Over

Rubis Energie, a wholly owned subsidiary of Rubis SCA in France has proposed a take-over offer of 75.01 percent (1,182,968,076) of the issued ordinary shares of KenolKobil Plc.

In a transaction on Tuesday, through a block trade, Rubis acquired a 24.99 percent stake (367,793,124 shares) at 15.30 shillings per share held by Wells Petroleum.

The proposed offer price is at 23 shillings per share, a 50.3 percent premium to Tuesday’s closing price of 15.30 shillings per share.

The offer will be open until 30th July 2019 at 5.00pm. Rubis requires at least 75 percent of the shares of KenolKobil so as to take steps towards delisting KenolKobil.

However, further details to the offer will be outlined in a subsequent “Offer Document” which is to be issued.

Analysts at Genghis Capital say that the offer is a highly attractive proposition at the offer price of 23.00 shillings per share.

Trading history indicates that market price has never been above 20 shillings per share. Genghis say that in their analysis, they noted some sluggishness in bottom line growth, with margin compression a key factor.

“In light of this, we valued KenolKobil Plc at 16.33 shillings per share. At the offer price, we recommend shareholders to tender their shares or SELL to market at a price close to the offer price,” stated Genghis.