The proposed takeover bid was announced in May after Dimension Data offered to acquire a 100 per cent stake in AccessKenya at 14 cents per share. The takeover was then halted after AccessKenya shareholders opposed the share price offer, deeming it too low. Talks are now underway to finalise the deal.
“The fundamental question here is really is it a good deal for the shareholders and as a board we looked collectively at it. The key thing that it came down to was is the offer a good one for our shareholders and that was a resounding yes from the independent financial advisers that came in and looked at various valuation methods,” AccessKenya’s managing director and co-founder Jonathan Somen told CNBC Africa on Monday.
“It’s time we believe to move on because a good offer has been put on the table and also it’s time to really accelerate the growth of the business.”
Access Kenya is the first IT company to list on the Nairobi Securities Exchange and is primarily a corporate internet services provider.
Dimension Data is expected to increase AccessKenya’s regional and global connectivity once the takeover has been finalised. Somen explained that Dimension Data also had the ability to speed up the roll out of fiber networks between Nairobi and Mombasa that AccessKenya is in the process of implementing.
Almost 500 kilometres of fiber optic cables have already been laid in Mombasa and Nairobi.
“Kenya is in a massive growth phase and this is the time for somebody to come in and really accelerate the opportunity that AccessKenya presents in the market today,” added Somen.
AccessKenya plans to roll out connectivity to the 47 counties under Kenya’s new constitution and anticipates that the Dimension Data takeover will fast-track the process.