Longhorn shareholders block sale of head office property

Shareholders of listed publisher Longhorn have blocked the planned sale of its headquarters in Nairobi.

During the annual general meeting held on October 28, a majority of the shareholders shot down the sale that was expected to generate Sh500 million to fund both local and regional expansion.

Sale of the 2.2 acre property was part of the special business of the publishing company and was expected to have been completed by the end of 2017.

“It was resolved by more than three-fourths majority not to pass the resolutions in relation to the sale of the company’s property known as LR 209/5604,” Longhorn Company Secretary Enid Muriuki said in a statement.

The plan to sell the building was informed by the need to get rid of idle assets as well as get into operations that generate revenue.

Longhorn has been on an acquisition spree as it looks to diversify its income.

The publisher in June raised Sh533 million from a rights issue that saw listed investment firm Centum become the new majority owner.

Of the funds raised, Longhorn plans to use Sh80 million on regional expansion, Sh100 million on product diversification and a further Sh100

During the AGM, the shareholders approved the acquisition of a 92 percent stake in LawAfrica Publishing.

“That subject to the fulfillment of several conditions, including receipt of all the required regulatory approvals, the acquisition of 92 percent shareholding in LawAfirca Publishing Limited be and is hereby approved,” the publisher said.

The acquisition is expected to cost Sh125 million.

LawAfrica publishes legal and other information books in Kenya, Uganda and Tanzania.

With the backing of its new majority shareholder, Longhorn has set its sights on becoming a pan African publisher with plans to enter new markets in the next two years.

Longhorn currently has operations in Tanzania, Uganda, Malawi and Rwanda as well as distribution deals serving as far as the Democratic Republic of Congo.