By Taarifa Ltd has completed its acquisition of a 54.08% stake in Nation Media Group PLC (NMG) from the Aga Khan Fund for Economic Development S.A. (AKFED), ending the Swiss-based institution’s 66-year ownership of East Africa’s largest media company, the companies said on Monday.
Taarifa said in a public announcement dated Aug. 31 that regulators in Kenya, Tanzania and Uganda had each granted exemptions from requirements to make a mandatory take-over offer for the remaining shares in NMG, clearing the final hurdle for the deal to close.
The Capital Markets Authority of Kenya, the Capital Markets and Securities Authority of Tanzania, and the Capital Markets Authority of Uganda all issued the exemptions under their respective take-over regulations, Taarifa said.
“All other requisite approvals and consents required to complete the Acquisition have been obtained,” the company said in the statement, adding that the acquisition has now been completed.
The deal gives Taarifa indirect control of 92,618,177 ordinary shares in NMG, acquired through its purchase of 100% of NPRT Holdings Africa Limited, the entity that previously held AKFED’s stake. NMG is listed on the Nairobi Securities Exchange and cross-listed on the Dar es Salaam Stock Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange.
Taarifa Ltd is owned by Rostam Azizi, an East African businessman with interests spanning media, mining, telecommunications, agriculture, real estate, port facilities, energy and construction, according to the companies’ joint disclosures.
Azizi was a co-founder and shareholder of Mwananchi Communications Limited between 2000 and 2006, where he helped establish the Tanzanian newspapers Mwananchi, The Citizen and Mwanaspoti, which were later acquired by NMG. He also holds interests in Habari Corporation, a Tanzanian media house.
“We are honored and deeply committed to becoming the majority shareholder of Nation Media Group,” Azizi said in a statement. “NMG is an institution of profound importance to East Africa, and we will uphold its editorial independence while investing in its continued success as the region’s leading independent media organisation.”
AKFED first announced its agreement to sell the stake on March 10 in Geneva, saying the transaction would conclude more than six decades of involvement with NMG that began in 1959.
Prince Karim Aga Khan IV founded East African Newspapers (Nation Series) Ltd that year and acquired the Kiswahili-language weekly Taifa Leo, which grew into a multi-platform media group spanning more than 30 brands across four countries.
The Daily Nation and Sunday Nation were launched in 1960, and NMG listed on the Nairobi Securities Exchange in 1973, becoming one of the first media companies in Africa to trade publicly.
The group later expanded into broadcasting with NTV Kenya and Easy FM in 1999, and into Uganda and Tanzania through the acquisition of the Daily Monitor and the establishment of Mwananchi Communications between 2002 and 2005.
NMG now reaches more than 62 million digital users and employs over 1,000 people across the region, according to AKFED. In 2016, the Aga Khan inaugurated a $20 million printing press that AKFED described at the time as the largest media investment in East and Central African history.
AKFED Director Sultan Allana said in the March statement that the fund was “proud of its contribution to building one of Africa’s most respected media institutions,” adding that AKFED was confident NMG would continue to uphold its editorial standards under new ownership.
Taarifa said it does not currently intend to make a mandatory or voluntary offer for NMG’s remaining shares, nor does it plan to delist the company from any of the exchanges on which it trades. The company said it intends to work with NMG’s board, which will continue to oversee operations.
The transaction comes as NMG pursues a broader digital transformation strategy. AKFED said in March that Taarifa had committed to supporting that shift and accelerating the group’s digital growth to strengthen its connection with audiences.
The Aga Khan Development Network will continue its involvement in regional media education through the Aga Khan University’s Graduate School of Media and Communications (GSMC), which it launched in 2015.
GSMC offers postgraduate programmes in digital journalism, media leadership and strategic communications, and has trained more than 7,000 practitioners across the region over the past decade, according to the network.
KCB Investment Bank acted as financial adviser on the transaction, according to Monday’s public announcement.
