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M&A Africa: Mauritius Fund Manager Offers Largest Buy Price For Kenyan Stockbroker

M&A Africa: Mauritius Fund Manager Offers Largest Buy Price For Kenyan Stockbroker

A Mauritian fund management firm Axis has offered to buy a majority stake in a Kenyan stockbroker Apex Africa Capital for about $4.7 million, the largest amount ever paid for any market intermediary in the East African nation.

According to a Business Daily report, detailed of the yet to be concluded deal were seen in an application to Competition Authority of Kenya (CAK) seeking for approval to conclude the transaction in a few weeks time.

CAK allowed the deal to go ahead on ground that it was unlikely to affect competition. The deal is yet to receive a stamp of approval from the capital markets authority.

According to undisclosed sources familiar with the deal, Axis, which offer fund management, investment advisory and tax shelters in the Seychelles, Mauritius and Kenya, was attracted to Apex Africa due to its “strong corporate and high-net-worth individual clients.”

Axis will take over Apex Africa through its local unit Mauritius Kenya Investment Holding.

Before this investment the largest ever investment in any Kenyan stockbroker was in 2008 when Renaissance Capital paid about $2.5 million for a license to become a stockbroker at the Nairobi Securities Exchange.