Foreign investor’s ownership request approved

Last Updated 13 years ago by Kenya Engineer

The Government of Kenya has approved to repeal the 20 percent local ownership tenet for AccessKenya.

An Information Technology firm incorporated in the UK, Dimension Data Holdings Plc, acknowledged its intention to buy AccessKenya for Sh3.05 billion early May this year and had asked to be exempted from that rule. This move means the local IT firm could delist from the Nairobi Securities Exchange (NSE).

The UK Company seeks to acquire a 100 percent stake in AccessKenya at the price of Sh14 a share.  At Sh14 a share, the price of Sh3.05 billion is Sh1 billion higher than AccessKenya’s market capitalization of Sh2.05 billion at the close of business on 3rd May.
 If the deal comes through, AccessKenya will have to seek the regulator’s approval to exit the securities exchange and convene a shareholders’ meeting to get the stamp of approval. The planned sale needs the approval of owners with 90 per cent of the market cap to go through.

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