Kenya Data Networks (KDN) has revealed that it hopes to offload a significant equity stake to a strategic investor in December as a way of securing a much needed cash injection, and to help it recover from financial losses. KDN’s chief executive Shahab Meshki has indicated that the search for an investor has attracted a number of local and foreign firms, commenting: ‘We have identified a number investors and the matter will be made public within the next two to three months as the firms are still conducting due diligence’.
According to TeleGeography’s GlobalComms Database, KDN is currently owned by the Sameer Investment Group (39.2%) and Altech (60.8%). South Africa-based Altech acquired a 51% stake in KDN plus controlling stakes in ISP sister companies Infocom (Uganda) and Swift for a total of USD75 million in March 2008, before upping its stake in September 2009. Prior to 2008 Sameer owned 96% of KDN while its former CEO Kai Wulff held a 4% stake.
Altech CEO Craig Venter commented: ‘External market conditions and internal operational challenges within KDN continue to impact negatively on the performance of the operation resulting in it performing below budget and incurring losses. The major focus going forward is to grow the revenue line while reducing customer churn and managing expenditure. We have initiated discussions concerning the introduction of partners into these operations and will advise shareholders of progress in this regard, in due course’.