Dimension Data’s Ksh3bn (R355m) acquisition of AccessKenya Group has cleared another hurdle. The Kenyan company’s board of directors has recommended that shareholders accept the offer.
The news comes after Kenya’s Capital Markets Authority formally approved the transaction last week.
Last month, the AccessKenya board appointed Kestrel Capital to conduct an independent valuation of its business, as required under takeover regulations. Kestrel concluded that the offer price from Dimension Data is represents a “substantial premium” based on all valuation methodologies.
Dimension Data will pay AccessKenya shareholders Ksh14/share for 218m ordinary shares — a 42% premium on the Ksh9,85 closing price on 3 May. Shareholders will also receive a final dividend of Ksh0,30/AccessKenya share.
The AccessKenya board has also recommended that shareholders vote in favour of delisting the business from the Nairobi Stock Exchange. This will take place in December if the offer becomes unconditional in all respects.
After the delisting, AccessKenya will be merged with Internet Solutions (IS) in Kenya under the AccessKenya brand. The IS brand will continue to be used in the Kenyan market, too. IS is a Dimension Data company.
AccessKenya Group was founded by brothers David and Jonathan Somen in 2000. It was one of the first Internet service providers in Kenya. It has 340 staff and provides data services to about 5 000 corporate customers in Kenya.
Shareholders have until 14 August to accept the Dimension Data offer. — (c) 2013 NewsCentral Media
