Pay-TV operator Multichoice Group has ceded a 30 per cent stake in its subsidiary GOtv Kenya Limited to an unnamed local investor who, according to the reports, did not pay for the shares.
According to BMA sources, the transaction, which reduced the pay-TV operator’s ownership in the business to 70 per cent, was done to comply with local ownership regulations.
MultiChoice did not name the Kenyan investors who took up the shares.
In a statement, the pay-TV operator said, “There was a dilution of MultiChoice Africa Holdings B.V’s interest in GOtv Kenya Limited from 100 per cent to 70 per cent due to local shareholding requirements.”
“There was no carrying value related to the non-controlling interest in GOtv Kenya Limited before this transaction. No cash consideration was received,” the statement read.
MultiChoice did not indicate why it did not receive cash in the transaction or if it could get money from the new investors at a future date.
Under local ownership regulations published by the ICT ministry in 2020, foreign-owned companies in the communications and mobile money industry must ensure they have a 30 per cent local ownership.
The push to introduce local ownership is done in other African countries like Uganda, where telecommunications companies must cede a 20 per cent stake to local investors.