Dimension Data has made an open market offer to purchase 100% of the issued share capital of NSE-listed AccessKenya, for KES14.00 per share.
Based on the 218-million shares in issue, this is equivalent to KES3,052-billion. The offer is a premium of 42% above the closing price of KES9.85 on Friday 3 May 2013.
AccessKenya shareholders will also be entitled to receive the final dividend of KES0.30 per AccessKenya share, proposed by the AccessKenya board in respect of the year ended 31 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 Nairobi Securities Exchange, 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 and NGOs to a large cross section from industries across the economy.
AccessKenya owns and operates a 400km 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 focusses on value-added IT services including IT support, offsite backup and disaster recovery, e-mail 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.
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.
“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,” says Derek Wilcocks, Dimension Data’s Middle East and Africa CEO.
“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.
Based on the 218-million shares in issue, this is equivalent to KES3,052-billion. The offer is a premium of 42% above the closing price of KES9.85 on Friday 3 May 2013.
AccessKenya shareholders will also be entitled to receive the final dividend of KES0.30 per AccessKenya share, proposed by the AccessKenya board in respect of the year ended 31 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 Nairobi Securities Exchange, 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 and NGOs to a large cross section from industries across the economy.
AccessKenya owns and operates a 400km 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 focusses on value-added IT services including IT support, offsite backup and disaster recovery, e-mail 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.
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.
“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,” says Derek Wilcocks, Dimension Data’s Middle East and Africa CEO.
“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.