NMG Shares Surge After Rostam Azizi Majority Acquisition Announcement

Nation Media Group (NMG) shares have rallied sharply at the Nairobi bourse following news that Tanzanian businessman Rostam Azizi plans to acquire a controlling stake in the regional media giant.

The company’s stock has risen significantly over two trading sessions after the deal was made public earlier this week.

Market data shows that the media firm’s shares climbed by 28.3 percent across two consecutive trading days, reflecting renewed investor confidence in the company’s future under the new strategic shareholder.

The rally began immediately after the announcement on Tuesday 10, that Mr Azizi would be taking over the majority ownership.

On Thursday 12, the stock continued its upward trajectory, gaining 7.6 percent to close at Ksh 17 per share, its highest level in about two years.

The surge pushed the company’s market valuation to roughly Ksh 3.24 billion and followed a strong 19.2 percent increase recorded on Wednesday 11, when the stock traded without the usual 10 percent daily regulatory cap due to the material disclosure made after Tuesday’s market close.

Details of the Transaction and the Market Reaction

Prior to the announcement of the acquisition deal, the company’s shares were trading at Ksh13.25.

However, the trading activity in the counter has picked up since the announcement.

The counter has exchanged 298,887 shares valued at approximately Ksh 4.84 million in the last two trading sessions.

Nation Media Group has a total of 190.295 million issued shares.

The deal will see Mr. Azizi acquire a controlling 54.08% stake in NMG from the Aga Khan Fund for Economic Development (AKFED), which holds its shares through NPRT Holdings Africa Limited.

The deal is expected to be completed in three to four months, subject to approval from relevant regulators in the jurisdictions in which the company operates.

Also Read: Tanzanian Tycoon Rostam Azizi Reveals Details of Nation Media Group Acquisition

Commitment to Investment and Editorial Independence

Following the announcement, Mr. Azizi outlined plans to increase investment in the media house as it continues expanding its digital platforms in response to evolving global media consumption habits.

“Our intention is to increase investment so that we can be more profitable. There will be more jobs created as we go forward because we need to transform and cater for every Kenyan in order for this to be a successful partnership,” said Mr. Azizi.

He further assured stakeholders that the company’s longstanding editorial principles would remain intact despite the change in majority ownership.

The media group was founded 66 years ago by His Highness The Aga Khan IV and has built a reputation for maintaining independent journalism across East Africa.

Historical Significance of NMG

Nation Media Group was listed on the Nairobi Securities Exchange in 1973, about fifteen years after its establishment.

The founding vision was to create an independent press that could support democratic governance in Kenya during the early years of independence.

The company began with the Swahili newspaper Taifa Leo before expanding into a broad portfolio of more than 30 media brands operating across the East African region.

Today, NMG’s shares are cross-listed on the Uganda Securities Exchange, the Dar es Salaam Stock Exchange, and the Rwanda Securities Exchange.

Taarifa Ltd has confirmed that the company will remain listed on all the exchanges where its shares currently trade once the acquisition process is finalized.

The investor also indicated that there will be no buyout offer for minority shareholders.

Also Read: Kenya and Rwanda Strike Deal to Simplify Cross-Border Payments

Azizi’s Media and Business Background

Investor optimism surrounding the deal partly reflects Mr. Azizi’s previous experience in the media sector.

He was among the founders and early shareholders of Mwananchi Communications Limited between 2000 and 2006.

That company launched publications including The Citizen, Mwananchi, and Mwanaspoti, which were later acquired by Nation Media Group in 2006.

However, Mr. Azizi later invested in New Habari (2006) Limited.

He also had interests in Africa Media Group from 2005 to 2019.

Through the investment platform, he was associated with various media houses in Tanzania.

The media houses included Channel Ten, DTV, CTN, Classic FM, and Magic FM.

In addition to the media sector, the businessman has invested in various sectors.

The sectors include the mining sector, the telecommunication sector, the agricultural sector, the energy sector, the construction sector, the port facilities sector, and the real estate sector.

Furthermore, the businessman was a founding shareholder of Vodacom Tanzania in 1999.

However, he later exited the investment after two decades in 2019.

Mr. Azizi later invested in a consortium that acquired the third-largest mobile telecommunication operator in Tanzania.

The operator is known as Tigo. However, it is now known as Yas.

Follow our WhatsApp channel for instant news updates

Collage photo of Taarifa Limited owner Rostam Azizi and Nation Media Group Headquarters in Nairobi. PHOTO/NMG