What was once dismissed as an attractive takeover offer has become one of the Nairobi Securities Exchange’s greatest shareholder success stories.
BOC Kenya shareholders are celebrating after a five-year battle to stop what they believed was an undervalued takeover by industrial gas manufacturer Carbacid Investments—a decision that has ultimately created billions of shillings in shareholder value.
In November 2020, Carbacid, together with its controlling shareholder Akasya Investments LLP, offered to acquire BOC Kenya at Sh63.50 per share, valuing the company at Sh1.23 billion.
The offer, however, was rejected by minority shareholders led by businessman Ngugi Kiuna, who argued that the proposed price significantly undervalued the industrial and medical gases manufacturer. An independent financial adviser appointed by BOC Kenya’s board reached a similar conclusion, estimating the company’s fair value at Sh91.76 per share as early as 2021.
Rather than selling, Kiuna increased his investment in the company throughout the legal battle. His stake grew from 7.6 percent to 17.91 percent, giving him enough influence to frustrate a compulsory acquisition and prevent BOC’s delisting from the Nairobi Securities Exchange.
After nearly five years of legal and regulatory battles, Carbacid abandoned the takeover in March 2025, citing delays that prevented the transaction from being completed within the agreed timelines.
The market has since rewarded the shareholders who held their ground.
BOC Kenya’s shares, which were offered Sh63.50 in the takeover, now trade at around Sh80.50, and at one point rallied to an average of Sh174.50, with an intraday high of Sh175—more than double the original offer price. The company’s market capitalisation has also surged from Sh1.23 billion in 2020 to approximately Sh3.4 billion today.
The company’s financial performance has also strengthened. BOC Kenya reported a net profit of Sh314 million for the year ended December 2025, a 48.8 percent increase from Sh211.6 million the previous year, while revenue rose to Sh1.42 billion.
Shareholders have also enjoyed growing dividends, with BOC declaring a Sh2.85 per share dividend for 2025, continuing its steady upward trend in shareholder returns.
For Carbacid, the failed acquisition means it will continue pursuing growth independently across East Africa. For BOC Kenya investors, however, the outcome has become a textbook example of the value of patience and conviction.
This is a masterclass in corporate governance and shareholder activism.
Minority shareholders stood their ground, challenged what they believed was an unfair valuation, and were ultimately vindicated by the market. BOC Kenya’s valuation has grown from Sh1.23 billion in 2020 to roughly Sh3.4 billion today, while shareholders have benefited from a stronger share price, higher profits and increasing dividend payouts.
The biggest lesson for investors is clear: Know the true value of the company you own. Don’t rush to sell simply because a takeover offer is on the table. In this case, Ngugi Kiuna and the other minority shareholders played their cards perfectly, proving that determined shareholder activism can protect investor value and reshape the outcome of major corporate transactions.
