Kenya: Kenol Takeover Halted Over Sh240 Million Debt


The planned takeover of KenolKobil Ltd hangs in the balance after a creditor obtained a court order to stop the process until a debt amounting to over Sh240 million is settled.

The court order was granted by High Court Judge Margaret Muigai in an urgent application filed by Delina Enterprises Kenya Ltd, which had argued that the firm may leave the country without paying the debt.

FULL PARTICULARS

“A temporary injunction is hereby issued to KenolKobil and its agents stopping the completion of the takeover transaction by shareholders voting on the offer,” Justice Muigai ruled.

Delina has been directed to provide the court with detailed evidence of the debt and demonstrate how the proposed takeover transaction will affect KenolKobil’s ability to settle the amount.

Last October, KenolKobil started the process of selling its entire stock to French firm Rubis Energie and it is expected that, once compete, KenolKobil will delist from the Nairobi Securities Exchange.

Delina, through lawyer Edward Wangila, claims it risks being impaired if the process is completed before it is paid all its dues.

“KenolKobil has not fully published or informed the public of the full particulars of the intended takeover and, in particular, the manner in which it intends to deal with its liabilities and pending claims,” lawyer Wangila said in court papers.

He said Delina is apprehensive that KenolKobil may be taking steps to avoid paying its debts, and that there is a likelihood that the money may not be paid, even with a court order, once the company leaves Kenya.

INSIDER TRADING

Further, the firm believes KenolKobil holds no other property except what it currently seeks to transfer to Rubis Energie.

KenolKobil has been directed to respond to the application which will be heard Wednesday.

In a separate application, Capital Markets Authority (CMA) has revealed a WhatsApp message linking stockbroker Aly-Khan Satchu to insider trading of KenolKobil shares ahead of the oil marketer’s takeover announcement.

CMA told the court on Monday that Mr Satchu tipped investors to buy huge amounts of KenolKobil shares based on the takeover information that was not in the public domain.

Mr Satchu allegedly demanded a 50 per cent share of the profit gains, estimated at Sh500 million.

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Publish date : 2019-02-13 13:52:41

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