Bloomberg News

KenolKobil Gains as Owners Wait for Buyout Price: Nairobi Mover

July 02, 2012

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.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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