DiData eyes AccessKenya for R326m
07 May 2013, 11:54
Nairobi - International information
and Technology Company Dimension Data Holdings has made an open market offer to purchase
100% of Nairobi Securities Exchange (NSE) listed AccessKenya for KES14.00 per
share - or around R1.50 per share.
Based on the 218 million shares in issue‚
this is equivalent to KES3.052 billion‚ or around R326.4m.
Dimension Data said in a statement late on
Monday that the offer is a premium of 42% above the closing price of KES9.85 on
Friday 3 May 2013 and a premium over the volume weighted average price (VWAP)
of AccessKenya’s shares of 55% for the 30 day VWAP‚ 105% for the 90 day VWAP‚
and 155% for the 250 day VWAP.
AccessKenya shareholders will also be
entitled to receive the final dividend of KES0.30 per share proposed by the
AccessKenya board for the year ended December 2012.
The AccessKenya Group was founded by
brothers David and Jonathan Somen‚ and was one of the first ISPs to launch in
Kenya in 2000. The company‚ which was also the first ICT company to list on the
NSE‚ employs 340 staff‚ and provides predominantly connectivity-based data
services to about 5 000 corporate customers in Kenya.
These customers range from large
multinationals‚ government agencies‚ NGOs‚ as well as a large cross section
from industries across the economy.
AccessKenya owns and operates a 400
kilometre Carrier Ethernet Fibre Optic Network in both Nairobi and Mombasa
which connects over 500 commercial buildings. The company also operates two
wireless networks which further extends coverage to 10 other towns around
In addition to offering a wholesale carrier
services‚ AccessKenya also has a high-end consumer base. AccessKenya’s IT
services arm focuses on value-added IT services including IT support‚ offsite
backup and Disaster Recovery‚ email and security services‚ as well as other
managed IT services into the customer's Local Area Network (LAN).
“The company has built a reputation based
on high bandwidth speeds and value for money‚ high levels of network
reliability and excellent customer service. In 2012‚ the company’s turnover was
KES1.9 billion with EBITDA of KES700 million‚" Didata said.
Dimension Data currently operates in Kenya
through subsidiaries Dimension Data Kenya‚ Internet Solutions Kenya‚ and
Plessey Kenya and intends to merge its Internet Solutions Kenya business into
Derek Wilcocks‚ Dimension Data’s Middle
East and Africa CEO said‚ “The acquisition of AccessKenya is in line with
Dimension Data’s goal to pursue a strategy of expansion in sub-Saharan Africa.
The growth opportunities and liberal and progressive ICT regulatory framework
within Kenya make this market highly attractive for Dimension Data to establish
an even stronger presence. IS Kenya and AccessKenya have worked together on
mutual clients for some years. In addition‚ we have good relationships‚ and
there is also a strong strategic fit between the businesses.”
The transaction is contingent on
shareholder acceptance and various regulatory approvals.