[kictanet] [Fwd: [DigAfrica] Access Kenya buys Internet firm]

[alice]

Access Kenya buys Internet firm


Story by NATION Reporter and REUTERS
Publication Date: 7/5/2007

AccessKenya Group yesterday announced the acquisition of a broadband
leased line Internet Service Provider, Todays Online, subject to
approval from the Monopolies Commission.

Todays Online's acquisition, marks a significant step for the company
which listed at the Nairobi Stock Exchange early last month.

The Managing Director of the Group, Mr Jonathan Somen, said that the
purchase clearly showed the market that the company was keen to
invest funds raised from the IPO.

"Unlike many previous IPOs, AccessKenya Group went public to raise
capital to fund our expansion, and we had specifically told the
market that making acquisitions would be an important part of our
strategy," commented Jonathan Somen, Managing Director of the Group.

Milton Njanja, Managing Director of Today's Online commented
further: " Following discussions with AccessKenya, the Board of
Todays felt that the interests of our customers would be best served
by transferring their connections to AccessKenya's network, giving
them access to better speeds and higher value for money."

As part of the transaction, Todays' Online, will work with
AccessKenya to migrate the customers onto the AccessKenya Group's
network. Todays' Online will also continue to sell internet services
for AccessKenya for at least the next nine months as agents.

The exact value of the transaction consisted of an initial
undisclosed fee and a future payment based on the successful
migration of the customer base to AccessKenya's network.

In the financial markets, the Kenya shilling weakened against the US
dollar in the week, dragged down by dollar demand from corporates and
bank players squaring their positions, dealers said.

The local unit traded at Sh66.70/80 to the dollar, compared with last
Wednesday's close of Sh66.20/30.

"There was a lot of dollar demand towards the end of last month as,
which seems to have spilled over to this week. This made the shilling
to lose almost 40 cents," said Jeremiah Kendagor, head of foreign
exchange at the Kenya Commercial Bank.

"Basically it was from corporates and there was also squaring off by
interbank players," he added.


<http://www.nationmedia.com/dailynation/nmgcontententry.asp?>



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