Insurance group Jubilee Holdings on Monday said it has increased its stake in technology firm SEACOM to 18.8 per cent after acquiring an additional 10 per cent
Jubilee Group chair Nizar Juma through a statement said the firm is acting through IPS Cable System Limited, which bought shares amounting to 10 per cent at SEACOM Holding (Mauritius).
“The completion of this transaction lends credence to our continued need to diversify our investment priorities across key sectors of the economy. Our continued investments into infrastructure sub-sectors, namely energy and ICT are representative of this diversification and importantly manifest our desire to participate as an engine of economic growth of our region,” said Juma.
“This additional investment will continue to provide us with stable and consistent returns as has been the case with our existing investments as well as consolidate our position at the centre of digital transformation in our region.”
Seacom is a $650 million, 15,000-kilometre submarine fibre optic cable project linking South Africa, Mozambique, Madagascar, Kenya and Tanzania with other international broadband cables.
It seeks to provide low cost and high-quality broadband capacity.
The acquisition comes after Jubilee Holdings gained KSh2.074 billion from the sale of 66 per cent of its Insurance business to multinational Allianz Group.
Other players include the East African Marine System (TEAMS) which runs a 5,000-kilometre undersea cable connecting Mombasa with Fujairah in the United Arab Emirates. TEAMS was built as a joint venture between the Government of Kenya and Kenyan operators, who hold 85 per cent shares and UAE-based operator Etisalat, with 15 per cent.
The increased investment in Seacom is part of Jubilee’s strategy of allocating capital to assets with stable, long-term returns.
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