AccessKenya in buy-outs plan

By Nation AccessKenya shareholders on Thursday gave the firm a go-ahead to acquire more companies in the information and communication technology sector to consolidate its position in the market. Last year, the ICT company acquired Openview Business Systems and Today’s Online, an internet service provider. The much-needed approval by shareholders during their first annual general meeting since listing at the Nairobi Stock Exchange in June last year, will now allow the firm to invest Sh600 million in a number of buy-outs soon. Of the available funds, the company will spend Sh200 million in a new residential network in Nairobi and Mombasa. A further Sh100 will be injected into The East African Marine System (TEAMS) project spearheaded by the government. The project is meant to link the country to the rest of the world through a submarine fibre optic cable. The remainder, Sh300 million, will go towards strategic acquisitions as the company seeks an increased market share of its corporate IT services segment. Shareholders also allowed the AccessKenya board to increase its capital base to 500 million shares that would be used for further fundraising in case of an acquisition, share split or a bonus issue. The company currently has an authorised share capital of Sh250 million shares with just over 200 million shares issued. “This is a strategic plan to give us flexibility though we are yet to decide on what exactly to do with such shares,” noted the board’s chairman, Mr Micheal Somen. AccessKenya directors had also sought from its shareholders the right to make any acquisitions below Sh200 million, or less than 5 per cent of the company’s total market value, without the hassles of calling an extra-ordinary general meeting. “We would rather the Sh3 million spent on hosting an EGM goes to your dividends instead of tedious and expensive meetings,” said Mr Somen. He promised that all targeted acquisitions would be done above board though currently, any negotiations were secret due to ‘commercial challenges of exposing impending deals.