This archive report was first published on 7 August 2019.
Kenyan billionaire Chris Kirubi has received an additional $2 million from the sale of the BiC brands East Africa franchise, which was sold to French conglomerate Société BIC in 2018.
The sale deal, which was completed on December 31st, 2018, initially yielded €6.3 million (Sh714 million) for the franchise.
According to Forbes, Société BIC later announced that Haco Industries, a manufacturing company owned by Kirubi, was entitled to an additional deferred payment totaling $11 million, bringing the total sale deal amount to $17 million.
As reported by Business Daily, the deferred payment is compensation for the capital investments Haco had made in the BIC franchise, including inventory and imported raw materials.
“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,” Société BIC said in its latest trading update.
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.
