Morning Market Brief 11th January 2019
The Board of KenolKobil Plc (NSE:KENO) has announced receipt and acceptance of the takeover offer from Rubis Energie. Subsequently, the tender offer was opened to all shareholders of KenolKobil on 20th December 2018 and will close on 18th February 2019. The offer, proposes purchase of all outstanding shares in the firm not owned by Rubis Energie at KES 23 which is a 19.8% premium to the current price of KES 19.20. At the offer price, we recommend shareholders to tender their shares or SELL to market a price close to the offer price.
Activity in the previous session saw an increase in turnover from Wednesday’s session as all indices closed in the green. Foreign investors continue to be dominant in the market which is expected to hold with trading in the main index counters. Safaricom is expected to trade higher in the session after yesterday’s gains amid some selling interest in the counter or investors taking profits. Additionally, we anticipate the market to continue the current steady albeit slow uptrend that has been the case for the past week.