Access Kenya rated as a speculative buy

Guys read this article by Kestrel

http://af.reuters.com/ar...ws/idAFL5E7LH36620111017

So the Green Elephant is at it again, this time positing to acquire Seven Seas Tech (good for them). I note the Business Daily story attributes a whopping 7% of Safaricom revenues to acquisitions? Which ones...

I'm not an expert but I fail to see how acquiring spectrum from shell companies (OneCom, PacketStream, Igo etc.) grows client base or builds expertise. Safaricom is only a leader in mobile data; the leader in corporate data is Access Kenya.

Hence my reasoning that acquiring Seven Seas Tech, a company who's largest client is Safaricom, company that doesn't own any tangible asset or create anything (consumate middleman) doesn't make sense.



Now an acquisition of majority stake in Access Kenya, the largest player in Corporate data with a metro-fibre to boot, and with a demonstrated in-bred knowledge of how to run the data business (around 34% EBITDA FY anticipated) at a market capitalization of Kes 1b at today's prices....

Here Safaricom would create shareholder value and assume leadership of data in Kenya. But the catch would be to tie in AccessKenya dominant shareholders and ensure the "stay hungry" culture of AccessKenya was preserved separate from the bloated Safaricom Enterprise structure.


What say you?

http://www.businessdailyafrica....0/-/4qrblwz/-/index.html

@KenyanLyrics Bob went hard on BD just shows how crap BD is!!!

Ladies and Gents, doesn't the QUESTION still beg, what is a better acquisition target?

The story by Mark Okuttah reveals a lot about Seven Seas Tech. It seems to be a public relations gaffe, in SST's favour - author writes frequently about Telecom, so he is not naive, paid perhaps but not naive.

with his bias for safcom incheck i amnt suprised it came from him ..lol