This archive report was first published on 29 December 2019.
On December 29, 2019, Chris Kirubi's Haco Industries received a significant payment boost, bringing his total earnings to Sh. 67 million. This payment is part of the staggered compensation for the sale of the BIC East African franchise to Société BIC.
The French conglomerate, which acquired the regional stationery, lighters, and shavers franchise, made the initial payment of €6.3 million (Sh. 703 million) in 2018. As per the deal, Haco Industries was entitled to an additional deferred payment of €9.9 million (Sh. 1.1 billion) over three years, increasing the total compensation to Sh. 1.8 billion.
According to the report, Société BIC made the first additional payment of €1.8 million (Sh. 201 million) in the half year ended June and has now paid Haco Industries a further Sh. 67 million in the three months ended September.
Under the agreement, Haco Industries retained ownership of the properties, which it has leased to Société BIC. The French multinational inherited BIC inventory with a gross value of €2.8 million (Sh. 312 million) and supplier debt of €9.9 million (Sh. 1.1 billion), resulting in short-term liabilities exceeding current assets by €7.1 million (Sh. 793 million).
