Site icon MONEYINAFRICA

Scangroup set for Sh480m more from unit stake sale

Scangroup set for Sh480m more from unit stake sale

Scangroup CEO Bharat Thakrar. FILE PHOTO | NMG Marketing services firm Scangroup could receive an additional Sh480 million from the disposal of its 60 percent stake in its subsidiary Kantar Africa.

The extra compensation is in the form of profit-sharing in the unit for the period leading up to the conclusion of the transaction and payouts tied to the unit’s indebtedness.

The Nairobi Securities Exchange-listed firm expects minimum proceeds of Sh5.2 billion in the deal, with the potential extra payouts taking the total consideration to Sh5.7 billion.

“Your company is expected to receive base consideration of $49.7 million (Sh5.2 billion) and profit amount calculated at 4.8 percent per annum for the period from January 1 to the completion date (expected in the second quarter of this year)…which profit amount is expected to be about $3 million (Sh318 million),” Scangroup said in a circular to shareholders.

“The group may also receive additional consideration of up to $1.52 million (Sh161 million) over the next three years in the event that certain contingent liabilities are lower than estimated.”

Scangroup says net proceeds from the transaction will be Sh5 billion and that it will use at least 40 percent of the amount (Sh2 billion) to pay a special dividend.

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.
Exit mobile version