Toyota Tsusho has acquired a 9.5 percent stake in Kenyan IT services firm Seven Seas Technology for about $3 million.
In a gazette notice published on the local dailies by the Competition Authority of Kenya, Toyota Tsusho’s venture capital arm, CSV Africa Corporation will acquire 38,852 ordinary shares worth $3 million in the firm. The deal now values Seven Seas Technology at Sh3.2 billion ($31.4 million).
“Pursuant to the provisions of section 46 (6) (a) (ii) of the Competition Act it is notified for general information of the public that the Competition Authority of Kenya has authorized the proposed subscription for 38,852 ordinary shares in the share capital of by Toyota Tsusho CSV Africa Private Limited” read the notice.
The firm’s founder and CEO, Mike Macharia remains the largest shareholder with a 35 percent stake, followed by Abraaj Group with 21 percent stake stake, Toyota with the 9.5% and other shareholders taking up the remaining.
Seven Seas offers IT solutions ranging from hardware, software and consulting services to a number of govt and private firms across Africa.
The CEO also noted that the investment by Toyota will help in scaling up the firm’s operations as it prepares for an initial public offering(IPO) at the Nairobi Securities Exchange in 2020.
