KenolKobil Ltd. (KNOC), a Kenyan fuel retailer, rallied as investors wait for Puma Energy BV to announce the price at which it will buy out minority shareholders.
The stock jumped 8 percent to 15.45 shillings by the close in Nairobi, the biggest one-day gain since June 25, according to data compiled by Bloomberg.
“Most of the trading is being driven by speculation because the company is expected to issue a price in July,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said in a phone interview today. “The speculation is that minority shareholders will get quite an attractive price.”
The company said on June 28 that Puma Energy is continuing due diligence on a proposed takeover and it’s “cautiously optimistic” a deal will take place. KenolKobil said on May 8 its main shareholders agreed to sell their majority stake to Puma, a Geneva-based subsidiary of Trafigura Beheer BV. Puma will offer to buy 100 percent of KenolKobil after due diligence is completed, the Kenyan company said on May 15.
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