AccessKenya directors, Jonathan Somen (right) and David Somen. Photo/FILE
What you need to know:
The company Wednesday said it had not received a formal offer but has not ruled out a share sale.
The Somens own nearly a third of AccessKenya.
The analysts note that AccessKenya is the largest majority Kenyan-owned independent ISP, which makes it an obvious target should a larger foreign telecom come shopping.
Internet service provider AccessKenya has announced that it is open to a takeover bid if the price is right, making a U-turn on the Somen family’s earlier stance that their stake was not for sale.
The company Wednesday said it had not received a formal offer but has not ruled out a share sale.
“If someone comes along with a serious and sensible offer, we have a responsibility to all the shareholders to consider it,” said Jonathan Somen, the CEO of AccessKenya in an interview with the Business Daily.
“With regard to the price, we have also consistently stated that we feel that our share price is not reflective of the performance of the business.”
The Somens own nearly a third of AccessKenya.
The firm’s shares have gained 67.8 per cent over the past three months to Sh7.05 and the stock remains below its June 2007 IPO price of Sh10 a share. In mid-2008 the share was trading at above Sh30 a piece at the Nairobi Securities Exchange.
A sale of the firm will open a new chapter in the history of AccessKenya, which the Somen family brought to the Nairobi bourse through an IPO.
The family has tightened its grip on the ISP over the past two years through additional share purchase, helped by the firm’s lower share prices.
Filings with the regulator show that the Somens increased their shareholding to 30.26 per in November from 29.6 per cent last December and 25.3 per cent mid-2011.
Analysts from Kestrel Capital have maintained that AccessKenya remains a natural acquisition target especially due to its developed proprietary inland network and corporate client base.
The analysts also note that AccessKenya is the largest majority Kenyan-owned independent ISP, which makes it an obvious target should a larger foreign telecom come shopping.
Kenya has witnessed growing interest by foreign telecommunications companies, mainly through acquisitions.
These include South Africa’s MTN Business, which acquired UUNET, and Altech that bought Kenya Data Networks from businessman Naushad Merali before selling its majority stake to UK’s Liquid Telecoms in January.
Talks on the Somen family’s future in the company comes in a year when the service provider will for the first time in three years pay a dividend after announcing a 38.8 per cent increase in net profit.
This grew to Sh151.3 million in the year to December compared to Sh109 million a year earlier and a loss of Sh7.9 million in 2010, but its revenues grew 8.9 per cent to Sh1.9 billion.
This helped the company pay a dividend of Sh0.30 a share having last made a payment in 2009 (0.30) and Sh0.50 in 2008.
The Somens have become key beneficiaries of the dividend payment based on their holding. The CEO owns 16.96 per cent of the firm and he is the largest shareholder. His brother David Somen, who is also a director in the firm, and father Michael Somen own 7.3 per cent and 6.02 per cent respectively.
The profits got a lift from its stable costs and highlights the competitive pressure faced by AccessKenya in a market that has attracted cash flush players like mobile telephony firm Safaricom, triggering a price war.
The Communications Commission of Kenya data places its market share at 16.5 per cent based on subscribers in September behind Wananchi Group (41.5 per cent). Telkom Kenya’s stake stood at 13.5 per cent and Safaricom at 9.6 per cent.
The rising competitive pressure saw the firm increasingly pursue cost cutting plans over top line growth in the two years to 2011, but signalled a shift in the strategy last year.
