Kenyan ISP AccessKenya’s board of directors has recommended that its shareholders accept Dimension Data’s R355 million (Ksh3 billion) takeover bid.
This follows the formal approval by the Capital Markets Authority (SMA) last week.
“Having considered the valuation conducted by Kestrel Capital Limited, the board of directors of AccessKenya recommends that the terms of the offer should be accepted by AccessKenya shareholders,” the board said.
AccessKenya is a NSE-listed company, and was one of the first ISPs to launch in Kenya in 2000. The company employs 340 staff and provides data services to about 5,000 corporate clients.
AccessKenya appointed Kestrel Capital to conduct an independent valuation of its business. In its report, Kestrel found that Dimension Data’s offer price represented a substantial premium.
Dimension Data will pay AccessKenya shareholders R1.66 (Ksh14.00) per share for 218 million ordinary shares – a 42% premium on the AccessKenya share price of R1.16 (Ksh9.85) at close on Friday (5 July 2013).
AccessKenya shareholders wll also receive a final dividend of four cents (Ksh0.30) per share, for the year ended 31 December 2012.
“We are pleased to recommend the Dimension Data offer to our shareholders,” said AccessKenya chairman, Danial Ndonye.
“The board of directors believes that the time is right for the business to move into the ownership of a large organisation such as Dimension Data.”
The board also recommended that shareholders vote in favour of delisting, which would take place in December. After delisting, the company would be merged with Internet Solutions (IS) in Kenya under the AccessKenya brand.
“An expanded presence for IS means AccessKenya and existing IS and Dimension Data clients will benefit from an increased depth of service and quality of the solutions and services which will be available over time within the local market,” said Internet Solutions MD, Saki Missaikos.
Shareholders have until 14 August to accept the offer.