NSE directors had in April 2015 made a conditional offer to buyout 77.5pc stake in the Central Depository and Settlement Corporation.
The self-listed firm already has a 22.5 per cent stake in the CSDC with 50 per cent held by Capital Markets Challenge Fund, a private investment firm owned by banks and insurers.
Nairobi Securities Exchange has shelved plan to buy majority stake in Central Depository and Settlement Corporation (CSDC) to focus on new products, it has emerged.
The directors of the self-listed firm, then led by Eddy Njoroge, had in April 2015 made a conditional offer to buyout 77.5 per cent stake in the Nairobi bourse’s clearing and settlement house formed in 2000.
“There wasn’t regulatory intervention because after giving the notice, the shareholders appeared to have agreed to postpone progressing (with the plan),” Capital Markets Authority chief executive Paul Muthaura said on phone on Wednesday.
“So, as a regulator, we are still waiting for them to revert to us on what the plan is. It was still an intention rather than an action and therefore it never reached an approval stage.”
The NSE already has a 22.5 per cent stake in the CSDC with 50 per cent held by Capital Markets Challenge Fund, a private investment firm owned by banks and insurers.
AKS Nominees, associated with Kenya Association of Stockbrokers and Investment Banks, owns 18 per cent while the Capital Markets Investor Compensation Fund — which largely gets its cash from deductions on share transactions at the rate of 0.10 per cent of the total value — holds a seven per cent stake. The Uganda Securities Exchange and Dar es Salaam Stock Exchange control a 2.5 per cent apiece.
“So far, we have not had any traction in that area. But I believe we will still continue working with CDSC very closely. Ownership is not an issue,” NSE chief executive Geoffrey Odundo said on Tuesday.
The planned buyout had been subject to “parties reaching an agreement on the terms and conditions of the acquisition as well as approval from the company’s shareholders and relevant regulatory authorities”.
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