Longhorn #ticker:LKL has revived plans to sell its Sh500 million headquarters in Nairobi’s industrial Area a year after the publisher’s minority shareholders shot down the planned disposal.
The publishing firm, majority owned by Centum Investments #ticker:ICDC, has included the proposed sale as a special agenda item to be canvassed during its annual general meeting (AGM) slated for December 8.
Longhorn, which intends to rent space for its head office, wants to use proceeds from the land sale to finance the publishing company’s investment in local and regional expansion.
At last year’s AGM, the firm’s minority shareholders shot down the proposal by acclamation, marking a rare rejection of general or special resolutions for a firm listed on the Nairobi Securities Exchange (NSE).
“Since last year, we’ve have made strides in product development and regional expansion. We are now distributing our books in Senegal and Zambia and will soon be in Ethiopia and the DRC,” Longhorn’s chief executive, Simon Ngigi, said in an interview.
“There is much more we can achieve if we get the funds we are seeking from the sale of this land. At the AGM, we shall present our case afresh to the owners of the company and hope that the response this time will be favourable.”
Mr Ngigi last year told the Business Daily that the company expects to raise about Sh500 million from the sale of the property, a value which has increased given the land price appreciation rates in Nairobi.