NAIROBI, Kenya, Jun 13 – Longhorn Publishers is set to purchase a 74 percent stake in Law Africa Publishing Limited (Law Africa).
The purchase price has however not been disclosed.
“Pursuant to Regulations 19 (2) of the Capital Markets, Longhorn Publishers Limited hereby announces to the public that the company has on 9th June 2016 entered into an agreement with the shareholders of Law Africa Publishing Limited for the sale and purchase of 74 percent of the issued share capital of Law Africa Publishing Limited,” Longhorn Managing Director Simon Ngigi said in a cautionary notice on Monday.
The completion of the proposed acquisition is subject to several conditions being obtained, including all regulatory approvals from the Competition Authority of Kenya, Capital Markets Authority and approval by shareholders.
Law Africa is a private company that carries on business as a legal content publisher and a trader in both print and electronic books.
The company has three wholly-owned subsidiaries including Law Africa Publishing Uganda, Law Africa Publishing Limited (Tanzania) and Nathan Books Limited.
Law Africa specialises in publishing legal material for the East African market and is at the moment planning to venture into South Sudan.
“The proposed acquisition may have a material effect on the value of the shares of the company. The shareholders of the company and the public are accordingly advised to exercise due caution when dealing in the shares of the company,” Ngigi said.
The announcement comes a few days after Longhorn Publishers recently carried out a rights issue which saw the company raise Sh530million and Centum’s stake in the company rise to 60percent from 31.25 percent.
Overall, the purchase of Law Africa falls in line with Longhorn’s strategy of including more reference material in its collection mainly because of the longer shelf life.