Aga Khan has made a bid to acquire Africa’s first broadband undersea cable system company, SEACOM.
The move, which was announced last week, seeks to reorganize the SEACOM’s broadband business in Africa.
The bid was made by the Aga Khan Fund for Economic Development (Akfed). The Comesa Competition Commission made an inquiry about the proposal, and Akfed reported that it is planning to require all SEACOM shares.
The undersea fibre cable system is valued at KES 65 billion, and Aga Khan wants to own the entire business through its subsidiaries, Jubilee Holdings and Industrial Promotion Services (IPS).
Comesa will examine the details of this development.
All parties have also submitted that the proposal entails the acquisition of 100 percent shareholding in the target by IPS.
SEACOM started its operations in 2009, and serves Kenya, Mauritius, and Uganda.
“The parties have submitted that the proposed transaction involves the acquisition of 100% shareholding in the target by IPS resulting in IPS indirectly owing 25% voting rights and 10% economic rights in SEACOM Capital Ltd (Mauritius). It was submitted that the proposed transaction will further grow and enhance the business of the target and assist steering the target on a sustainable growth trajectory into the future in a diverse range of African markets,” reads a statement by Comesa.
“The Commission will, in accordance with the provisions of the Regulations, determine among other things whether or not the merger is likely to substantially prevent or lessen competition within the Common Market and whether the merger is or would be contrary to the public interest as provided for under Article 26 of the Regulations,” adds the regulator. – By Techweez