Kenya’s Capital Market Authority (CMA) has granted internet and telecommunications Company AccessKenya approval for full acquisition by South Africa’s Dimension Data, waiving the domestic ownership rule.
HumanIPO reported in May Dimension Data had made an open market offer to purchase the company’s 218 million shares at KSh3 billion (US$36 million) at KSh14 per share, a premium of 42 per cent above the KSh9.85 closing price on May 3, as it looks to expand across Sub-Saharan Africa.
According to Communications Commission of Kenya (CCK) regulations, telecommunication firms must have at least 20 per cent local ownership, but Dimension Data bid for a 100 per cent stake prompted them to request a waiver from the rule.
A CMA statement said: “The authority noted that it was satisfied that the offer document, shareholders’ circular and independent financial advisers’ circular made adequate disclosures of the information required under the Second and Fourth Schedules of the Capital Markets (Takeovers and Mergers) Regulations, 2002.”
They are also expected to convene an Extraordinary General Meeting (EGM) in September 2013 in order to consider a resolution approving the de-listing of AccessKenya Group Limited from the Nairobi Securities Exchange (NSE).
AccessKenya will be the second telecommunications firm in Kenya to receive a waiver of the 20 per cent domestic ownership rule after India’s Bharti Airtel acquired a 95 per cent stake in Zain (now Airtel Kenya).
