This archive report was first published on 10 May 2020.
On May 10, 2020, Scangroup, a Nairobi Securities Exchange-listed firm, announced plans to sell its 60 percent stake in its subsidiary Kantar Africa, with the potential for additional payouts.
The company expects to receive a minimum of Sh5.2 billion in the deal, with the possibility of extra payouts taking the total consideration to Sh5.7 billion.
According to a circular to shareholders, Scangroup 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 2020).
Additionally, the company may receive up to $1.52 million (Sh161 million) over the next three years in the event that certain contingent liabilities are lower than estimated.
Scangroup plans to use at least 40 percent of the net proceeds from the transaction, approximately Sh2 billion, to pay a special dividend.
