Morning Market Brief 30th November 2018
KenolKobil Plc (NSE: KENO) is facing push back from former employees seeking compensation for their ESOP shares valued at about KES 198.4Mn. This comes as the oil marketer looks to be 100% acquired by Rubis Energie which currently owns 25% of the firm. The former employees are seeking to have the High Court halt proceedings of the acquisition claiming that they were not given any consideration in negotiations between Rubis Energie and shareholders and that no provisions were made for their shares. However, we expect KenolKobil to deal with the matter through arbitration in an out-of-court settlement like it did with its former CEO Jacob Segman. Additionally, with the parties having consented that Kenol deposit the value amount of the shares (KES 198.4Mn) in a joint account for arbitration purposes this could delay closure of the transaction until the matter is solved.
As we come to the end of the week, we expect subdued turnover given lack of a vibrant market. There is some demand for EABL which is pushing the counter’s price higher as well as some supply on Safaricom with low demand. KCB and Equity are expected to trade between levels of KES 38.50- 40.0 though might close the session unchanged in price.