Investment firm Centum opted to up its stake in the Nairobi Securities Exchange-listed Longhorn Publishers, gaining 60 per cent for Ksh 390million.
The firm confirmed Friday it had upped its stake from 31.25 per cent to 60 per cent following Longhorn’s recently concluded rights issue that saw it raise Sh533 million.
Centum, which is also listed in the Nairobi bourse, had prior to the cash call said it would bid for a majority stake in Longhorn effectively making it the largest shareholder.
Prior to the rights issue, Centum had 45,699,225 ordinary shares in Longhorn, representing a 31.25 per cent stake. The firm now directly holds 164,014,078 ordinary shares, a 60 per cent stake.
“Centum does not intend to make a takeover offer for Longhorn and has applied to the Capital Markets Authority (CMA) for an exemption,” the firm said.
According to CMA rules, a person or firm with effective control of a listed company – holding more than 25 per cent or acquires more of the voting shares – and has no intention of making a take-over offer for the company must issue a public announcement declaring his lack of intent thereof and file for exemption from the regulator.
Longhorn Publishers had offered 126 million newly created shares to existing shareholders at a rate of 0.86 shares for every share held, with a target to raise Sh530 million.
Centum was already providing working capital to Longhorn through Nabo Capital of Sh100 million and the new monies will be used for product diversification and development of digital materials, being the immediate strategic objectives.
The second phase of strategic objectives will include local and geographical expansion.