Altech’s KDN acquires stake in TEAMS
Allied Technologies Limited (Altech), through its subsidiary Kenya Data Networks Limited (KDN), last week announced the acquisition of an 8.5% stake in the TEAMS cable costing US$11 million. The investment will give KDN a 10% voting right and an effective 8.5% equity stake in TEAMS. Altech will fund its portion of the purchase price from cash reserves.
“Africa is in the infancy stages of a sustained growth trajectory in broadband across multiple technologies, services and geographies. The acquisition of a stake in TEAMS compliments KDN’s strategy of being a cross-border, pan African network operator,” said Altech Chief Executive Officer, Craig Venter.
“Shareholders in TEAMS will be allocated cable capacity proportionate to shareholding. KDN’s stake will thus grant us access to additional bandwidth, provision for redundancy of broadband connectivity and significantly increase KDN’s service quality, all the while unlocking a wide range of additional services for the group as a whole,” said Venter
KDN, a Kenyan company 60.8% held by Altech, is a ‘carrier-of-carriers’ telecommunications operator and internet service provider, with dominant fibre and radio infrastructure throughout East Africa. It is currently the largest data network infrastructure player in the region, with an eye firmly set on broadening its reach throughout Africa. With terrestrial fibre laid in Kenya, Uganda and soon Rwanda, the acquisition of a stake in TEAMS is a perfect fit for KDN’s plans. In August 2008, KDN became the first ICT Company to construct a termination point at the Kenyan coast in anticipation of the landing of East Africa’s 3 international undersea cables. KDN’s fibre optic cable will connect the undersea cables that land in Mombasa to the rest of East Africa, creating a 5 country, fibre optic based terrestrial network linking Kenya, Tanzania, Uganda, Rwanda and the DRC.