NMG’s largest shareholder, The Aga Khan Fund for Economic Development (AKFED) intends to sell its 92.6 million ordinary shares in the Nation Media Group to its subsidiary company, NPRT Holdings Africa Limited, to carry out its internal reorganization in its shareholding at the Nation Group.
Established by His Highness Aga Khan, AKFED is an international development agency that promotes entrepreneurship, particularly in developing countries. The for-profit entity operates in countries of East Africa, West Africa, Central Asia, and South Asia.
AKFED is active in a variety of investments ranging from banking and finance, infrastructure and energy, tourism and hospitality, agribusiness and manufacturing to media and publishing, where it holds a majority of shares (54.08%) in the Nation Media Group – a Kenyan media house in Nairobi and listed on the Nairobi Securities Exchange (NSE).
NPRT – a wholly owned subsidiary of the AKFED served the NMG with a notice of its intended acquisition as required. According to the notice, NPRT will buy the shares from AKFED, and it will become the direct holder, while AKFED will remain the beneficial owner of the shares.
Application for exemption from making a mandatory takeover
Under Kenyan regulations, the acquisition of more than 50% of a listed company is usually subjected to a mandatory take-over offer to the remaining shareholders. However, NPRT is not planning to take over the entire mass media corporation or force all shareholders to sell their shares. Instead, it’s applying for an exemption from this rule due to the following reasons:
- There is no change in the ultimate control of NMG. AKFED remains in control.
- There is no change in business operations, management, or strategic decision-making of NMG.
- NMG will remain listed at the NSE.
Nation Media Group at the NSE
Nation Media Group is currently the 37th most valuable company at the NSE with a market capitalization of KES 2.55 billion, equivalent to 0.102% of NSE market equity. In the month of July, its share price has traded at an average of KES 14.00.
Nation Media Group financial metrics
In the year ended in December 2024, its revenue dropped by 12.5% to KES 6.23 billion from KES 7.12 billion in 2023. It also recorded a loss of KES 254.4 million, a 23.6% increase compared to KES 205.7 million in 2023. Total assets also decreased by 13.0% to KES 7.15 billion from KES 8.22 billion in the year ended December 2023.
