The Comesa Competition Authority has received a notice for the acquisition of Wananchi Group Holdings by Axian Telecom Fibre Limited, a newly incorporated firm in Mauritius.
- •The notified transaction involves the acquisition of 99.63 per cent of the issued ordinary shares of the Wananchi Group.
- •The parties have submitted that Wananchi Group is a holding company registered in Mauritius with subsidiaries in Mauritius, Kenya, Uganda, Malawi and Rwanda.
- •In Kenya, the company’s subsidiaries are Wananchi Group (Kenya) Limited, Wananchi Telecom Limited, Simbanet Com Limited, Wananchi Satellite Distribution Limited (which is dormant) and Cable Television Network Limited (which is dormant).
Wananchi Group, which was founded in 2008, ins a broadband tripleplay (internet, voice, TV) company present in Kenya, Uganda, and three other markets in the region. The parties have also submitted that the transaction is an opportunity for Axian to expand its footprint in East Africa by leveraging on an established and trusted brand, and to enter into new digital markets and optimize the use of the Wananchi’s assets where synergies can be leveraged.
The parties have submitted that from the Wananchi’s perspective, the transaction will provide an exit for its current investors who want to realise their investment, while also allowing the Axian to access additional growth capital as part of the Acquiring Group, post-transaction.
In a statement dated September 12, the Comesa Competition Commission says it will, in accordance with the provisions of the regulations, determine, among other things, whether the proposed transaction is likely to substantially prevent or lessen competition within the Common Market and whether the proposed transaction is or would be contrary to the public interest as provided for under Article 26 of the Regulations.
“In view of this, the Commission hereby gives notice to all interested stakeholders, including competitors, suppliers and customers of the parties to the proposed transaction to submit written representations to the Commission with regard to the subject matter of the proposed inquiry. All written representations should be sent to the Commission not later than 3 October 2024,” CCA said in the statement.