Yesterday the NSE, through its CEO, announced that the suspension from trading on the KenolKobil share had been lifted. The share resumed trading at KES 12.50, the level at which it was suspended.
The suspension, which lasted six weeks, had been instituted to allow the company to discuss and deliberate the possibility of a takeover by Puma Energy. Read the story about that transaction here.
Trading was suspended after KenolKobil said on May 8 that its main shareholders plan to sell more than 25% of their stake in the company to Puma Energy BV, a Geneva-based subsidiary of Trafigura Beheer BV. The proposal, which is subject to regulatory approval, may result in Puma taking a controlling stake by acquiring all shares in KenolKobil. Read related story here.
Upon the lifting of the suspension the counter jumped 4.4% during the six hour trading window to close at KES 13.05 per share. This is the highest level the share has reached in six years.
This jump could be attributed to investor expectation as Puma may offer a higher price than the share price pushing up the value of the company. The possibility of this may be driving investors to buy the share.