This archive report was first published on 6 August 2019.
Kenyan billionaire Chris Kirubi has received an additional Sh200 million from the sale of the BiC brands East Africa franchise, following a deferred payment of $2 million.
The sale, which was completed on December 31st, 2018, saw Kirubi's company, Haco Industries, receive an initial €6.3 million (Sh714 million) from French conglomerate Société BIC, the original owners of the brand.
According to Société BIC's latest trading update, published on its website, the company had begun paying the additional amount, with Haco receiving $2 million in the half-year ended June 2019.
“End of 2018, the transfer of Haco Industries Kenya Ltd stationery manufacturing and distribution to BIC was completed … 1.8 million euros (Sh206 million) were paid during the first half of 2019,” the company said.
Business Daily reported that the deferred payment is compensation for the capital investments Haco had made in the BIC franchise by the time the sale deal was completed, including inventory and imported raw materials.
Haco Industries, a fast-moving consumer goods manufacturer, held the exclusive franchise for BiC products in the East African region for 40 years until Kirubi sold the franchise to Société BIC.
