Centum plans to spend Sh390milliom and take up 51 percent of the publisher’s shareholding/FILE
NAIROBI, Kenya, Apr 11 – Centum Investment Company Limited has announced plans to raise its stake in Longhorn Publishers to over 50 percent during the upcoming Rights Issue.
Centum plans to spend Sh390milliom and take up 51 percent of the publisher’s shareholding.
“They intend to take up at least 50 percent of total available rights,” the publisher said in a statement, “This might take their shareholding to above 51 percent,” Longhorn Managing Director Simon Ngigi said.
Longhorn last week announced it had received approval from the Capital Markets Authority (CMA) to raise Sh530 million through a Rights Issue.
At the moment, Centum holds a 31.25 percent stake in Longhorn, with the founder, Francis Thombe Nyammo directly and indirectly holding a 34.89 percent stake.
“Centum has no intention to take-over the company and requisite approvals and waivers from the Capital Markets Authority and Competition Authority have been sought and received,” Ngigi said.
Book closure for the Rights Issue is April 14, 2016 and the rights will trade from 18-29 April 2016, with the offer closing on May 6, 2016.
In the event Longhorn achieves just the minimum 50 percent of the targeted amount, the publisher which owes Sh100 million to Nabo Capital, a subsidiary of Centum, plans to pay its debt from the funds raised.
The company wants to use another Sh100 million of the raised funds for working capital and Sh50 million for creation of digital learning materials.
Other strategic initiatives include product diversification, at Sh100 million, geographical diversification, Sh80 million and Sh70 million for acquisitions.
“The company has announced plans to launch new products including story books and college textbooks. It also intends to develop proprietary e-learning platforms as part of its drive towards digital educational content.”
