AccessKenya's board has recommended that its shareholders accept the KES3 billion - around R328 million - bid from Dimension Data bid to take over 100% of its shares.
Dimension Data said in May it had made an open market offer to purchase 100% of AccessKenya's shares in issue, listed on the Nairobi Stock Exchange, for 14 Kenyan Shillings (KES14) per share (R1.50). At the time of the announcement, and based on the 218 million shares in issue, this is equivalent to KES3.05 billion - about R327.6 million.
AccessKenya chairman Daniel Ndonye says: "We are pleased to recommend the Dimension Data offer to our shareholders. 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."
Founded by brothers David and Jonathan Somen, the AccessKenya Group was one of the first Internet service providers to launch in Kenya in 2000. The company, which was also the first ICT company to list on the Nairobi exchange, employs 340 staff, and provides predominantly connectivity-based data services to about 5 000 corporate customers - in Kenya.
"The AccessKenya brand is one of the most respected brands in the regional IT industry and is being acquired from a position of strength. This historic transaction provides good value. I encourage our shareholders to exercise their rights by accepting this offer which places a premium on the share value of more than 40%," says Ndonye.
The board has also recommended that shareholders vote in favour of delisting, which could happen in December. After the delisting, AccessKenya will be merged with Internet Solutions in Kenya under the AccessKenya brand although the IS brand will continue to also operate in the Kenyan market.
IS MD Saki Missaikos says the companies have a strong partnership, developed over four years. "An expanded presence for IS means AccessKenya clients 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."
AccessKenya turned over KES1.9 billion last year, which it expects to reach KES2 billion in 2013.
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