KenolKobil shares have been suspended from trading at the Nairobi Securities exchange for the next 12 days.
The suspension is meant to allow the transfer of shares to those who accepted the buyout offer by French firm Rubis Énergie SAS.
On Monday evening, Rubis closed a two-month window that was open for 75 per cent of KenolKobil shareholders to sell their shares at Sh23 per share. The takeover was valued at Sh 35.3 billion.
The energy sector operator could not reveal the exact number of shares sold as at close of the offer. However, they expressed confidence that they will receive acceptances from most shareholders.
Sources close the Star said on Monday that Rubis may only manage a majority stake in KenolKobil as opposed to a takeover.
They revealed that the transaction had already met the minimum acceptance threshold of 50 per cent plus one.
This means that KenolKobil will continue operating as a listed company at the Nairobi Securities Exchange. While the sources could not reveal reasons for the failed buyout, reports of insider trading might have had a negative effect on it.
Capital Markets Authority, flagged suspicious trading in KenolKobil shares moments after Rubis announced its takeover plans.
Upon the lapse of the suspension on March 11, Rubis will declare satisfaction or waiver of all conditions, and the central depository and settlement corporations limited will transfer sold shares to Rubis accounts.
Currently, Rubis owns a 25% stake in KenolKobil or about 367,793,124 shares. Outstanding shares are 1,471,761,200.