The Competition Authority of Kenya has approved the proposed acquisition Riara School with controlling rights, of 22.32% of the issued share capital by Actus Education Holdings AB.
Actus Education Holding AB (Actus Holding), the acquirer, is a wholly-owned subsidiary of Actus Equity. Actus Holding was incorporated for the purpose of the proposed transaction and does not have business activity in Kenya.
The Riara Group of Schools Limited (Riara Group), the target, is incorporated in Kenya. The target operates six (6) learning institutions in Kenya. The institutions offer 8.4.4 and British Curriculum education.
The parties’ combined turnover for the preceding year (2017) was over Sh1 billion and, therefore, the transaction met the threshold for full merger analysis as provided in the Merger Threshold Guidelines.
Kenya’s competition authority has given the go-ahead for the UK based Actus Holding to purchase 22 percent ownership in Riara schools. The deal will give Actus Holding the right to vote on all matters relating to the educational institution as well as access to the school’s financial records.
Riara group operates several educational institutions in Nairobi ranging from elementary level schools to tertiary level institutions. Through the partnership, Riara will be able to expand its network of schools through out the country and beyond.
Actus holding will supply funds needed to revamp Riara schools and grow the brand into a reputable education provider in the East African Region.
Riara’s CEO noted that the institution will continue to operate as usual and there will be no changes to the school’s management post-acquisition. The value of the transaction has not been revealed.
CAK noted that the two merging entities recorded a combined annual revenue of over KSh1 billion in 2017.