Zuku’s parent firm Wananchi Group has reportedly hired a US-based financial advisor Lazard Ltd to look for potential buyers as it plans to sell itself, Bloomberg reported, citing people familiar with the matter.
Some of Wananchi’s majority shareholders who include Helios and multinational telco Liberty Global are said to seek about $500 million (Sh 50 Billion) including debt.
The company has been facing shareholder wrangles in addition to tax evasion claims amounting to more than $ 30 Million. The Kenya Revenue Authority (KRA) is demanding more than Sh 3.0 Billion from the company which originates from its subsidiaries registered in Mauritius but operates in Kenya.
Last year, the company sold its corporate internet and data unit Wananchi Business Services to South African based Firm Synergy Communications (SynCom) for an undisclosed figure. SynCom is owned by African private equity fund Convergence Partners Communications Infrastructure Fund.
In May this year, Tanzanian businessman Ali Mufuruki who holds a 1% stake at the company, was said to be working on acquiring another 50% stake in the Zuku TV parent company. Tanzania’s Competition regulator said it was assessing the legality and economic impact of the acquisition.