The Capital Markets Authority (CMA) has exempted NPRT Holdings Africa Limited from making a mandatory takeover offer regarding NPRT’s proposed acquisition of 54.08% of Nation Media Group Plc’s stake from its parent company, Aga Khan Fund for Economic Development (AKFED).
Under Regulation 4 of the Capital Markets (Takeovers and Mergers), the acquisition of more than 50% of a listed company is subject to a mandatory takeover offer to the remaining shareholders.
The exemption means that the other shareholders will retain their shares, as the company does not plan to acquire the entire media corporation or force all shareholders to sell their shares.
“NPRT is therefore exempted from making a mandatory takeover offer to the remaining shareholders of NMG and does not intend to acquire any additional shares as part of the reorganisation,” read a notice issued by NPRT.
AKFED, a Swiss for-profit entity and international development institution, will sell its 92.6 million shares in NMG to NPRT, its fully owned subsidiary, to carry out its internal reorganization of its shareholding in the media group. The transfer will take place after receipt of all pending regulatory approvals.
Post NPRT Acquisition Outlook
Following the transaction, NMG’s business operations, management, and strategic decision-making will remain unchanged. Similarly, there will be no change in ultimate control of the media corporation as AKFED will remain in control. Nation Media Group will remain listed on the Nairobi, Rwanda, Uganda, and Dar es Salaam stock exchanges.
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