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Johannesburg - International information and Technology Company Dimension Data Holdings [JSE:DDT] 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 Kenya.
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 Access Kenya.
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.
