Aga Khan Fund for Economic Development (Akfed) wants to acquire Seacom
July 28th 2020
According to the Competition Commission of the Common Market for Eastern and Southern Africa, the Aga Khan Fund for Economic Development wants to acquire 100% of the Seacom submarine cable. The transaction valued at $ 603 million will allow it to consolidate itself in the very high speed market in Africa.
The Aga Khan Fund for Economic Development – a Swiss for-profit entity and an international development finance institution – wants to acquire the company Seacom (based in Mauritius), which owns the submarine fiber optic cable of the same name launched in 2009, which supplies part of Africa with high speed Internet connectivity.
It is the Competition Commission of the Common Market for Eastern and Southern Africa (Comesa), which unveils the information. She has received a notification to this effect from Akfed. According to the regional regulator, Akfed through its subsidiaries, Industrial Promotion Services (IPS) and Jubilee Holdings, wants to acquire 100% of Seacom’s shares. This will make IPS indirectly hold 25% of the voting rights and 10% of the economic rights in Seacom (Mauritius). The acquisition is valued at 65 billion Kenyan shillings (603 million USD).
Through this acquisition, Akfed, which is already a shareholder of Seacom, wants to fully enter the very high speed market which has experienced strong growth in Africa with the coronavirus crisis.
In accordance with article 26 of its competition regulations, Comesa intends to conduct an investigation into the Akfed acquisition offer. It will determine whether the transaction is likely to prevent or lessen competition significantly and harm the public interest.
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