Canadian Overseas Packaging Industries issued a notice on Friday indicating its intention to acquire 100 per cent of the ordinary shares belonging to a Kenyan-based packaging firm.
As outlined in a Gazette Notice, the Canadian firm has prepared an offer document detailing the terms and conditions for the proposed acquisition.
The offer document has been sent via postal mail to the postal addresses of the 29 shareholders of the company.
"Notice is given to the above-named shareholders that the offeror has made a take-over offer to acquire up to 100 per cent of the issued ordinary shares in the share capital of the (company name)."
The company sought to provide a cash offer in line with the Companies Act, No. 17 of 2015, Laws of Kenya (the Companies Act) which dictate business operations across the country.
Additionally, a copy of the Letter of Offer is available for inspection by the company shareholders, free of charge at their registered offices along Waiyaki Way during normal business hours during the weekday.
The Canadian firm specialises in the manufacturing and sale of corrugated fiberboard containers and paper bags.
Having operated globally for over 60 years, it has established a presence in regions such as the United Kingdom, East Africa, and the Caribbean.
With the proposed acquisition, the company aims to expand its footprint in Africa, solidifying its position in the market.
Under the Companies Act, a company takeover is permissible under two conditions. First, if the offer encompasses all shares in a company or more than one class of shares in a company.
Second is if the shares to which the offer relates include the share of different classes.
The firm undertaking the takeover is, however, obligated to provide a letter of offer to the shareholders in the company.
