In Summary
  • CMA Monday told a court that Mr Satchu tipped off investors to buy huge amounts of KenolKobil shares based on the takeover information that was not in the public domain.

  • Mr Satchu demanded they split the profit gains — estimated at Sh500 million — into half once they sell the acquired shares to French firm Rubis Energy.

The Capital Markets Authority (CMA) has revealed a WhatsApp message from stock market trader Aly-Khan Satchu linking him to insider trading of KenolKobil shares ahead of the oil marketer’s takeover announcement.

CMA Monday told a court that Mr Satchu tipped off investors to buy huge amounts of KenolKobil shares based on the takeover information that was not in the public domain.

Mr Satchu demanded they split the profit gains — estimated at Sh500 million — into half once they sell the acquired shares to French firm Rubis Energy, which announced on October 23 that it was taking over KenolKobil.

CMA told the court it learnt of the communication from Mr Satchu after it confiscated his phone on January 16, following the insider trading investigation.

“Some of the text messages recovered indicate that Mr Satchu notified a third party a clear week before takeover announcement,” the CMA said in court papers.

“He had actionable intelligence on a share buyout at a premium at the Nairobi Securities Exchange and providing highly specific details on the calculation of the said premium, and recommended to the traders to get in and out for a 50-50 split of profits.”

CMA hired East African Data Handlers, a computer forensic firm, for the KenolKobil assignment, which retrieved information from emails, computer hard drives and messaging systems such as WhatsApp.

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