Industrial and medical gases manufacturer BOC Kenya says it will now pursue growth on its own after the termination of an agreement to sell itself to carbon dioxide specialist Carbacid Investments.
The parties called off the deal last month citing too much delay in closing the transaction, ending the plan to create the largest and most diversified gases firm in the region.
“The company is focusing on growing its industrial gases footprint by engaging the manufacturing sector, agricultural and fabrication industries as well partnering with the key stakeholders in this sector,” BOC said in a statement when it published results for the year ended December 2024.
“The company is planning to complete the installation of further donor funded PSAs [oxygen plants] in the first half of 2025. This will improve accessibility of oxygen to remote health facilities. Additionally, we expect to increase the supply of bulk liquid oxygen to numerous public facilities in 2025.”
BOC’s profit rose 6.8 percent to Sh211.6 million in the review period, helped by a lower tax bill. Revenue declined to Sh1.2 billion from Sh1.5 billion the year before but costs fell at a faster pace, resulting in improved gross margins.
“During the year revenue decreased by 21.7 percent from prior year due to completion of donor funded infrastructure projects in the health sector in 2023 which were not repeated in 2024. These 2023 infrastructure projects comprised installation of medical oxygen tanks and medical gas pipelines in various hospitals,” BOC said.
“The reduction in the 2024 revenue was partially offset by the invoicing of the medical oxygen plant in [the fourth quarter]. Operating profit increased by five percent in the year due to continued cost management initiatives as well as reduction in operating expenses.” Carbacid and Aksaya Investments LLP in November 2020 made a joint offer to buy 100 percent of BOC shares at a price of Sh63.5 per share, aiming to complete the transaction by July 31, 2021.
The proposed deal was supported by the target’s parent form BOC Holdings which has a 65.38 percent stake in the Nairobi Securities Exchange-listed company.
The deal was delayed by more than three years after legal cases were filed by BOC’s minority shareholders who said the offer undervalued the company.
An independent valuation in early 2021 stated that BOC was worth the equivalent of Sh91.76 per share. The dissenting minority shareholders, including former BOC chairman Ngugi Kiuna, lost their cases at the High Court and the Capital Markets Tribunal.
BOC has been raising its dividend payouts in recent years, declaring a payout of Sh6.15 per share for the year to December 2024. This was up from Sh6.05 per share for the prior year.
The new dividend will be paid on July 21 to shareholders on record as of May 31.
