AccessKenya CEO Jonathan Somen will be free to seek a new term based on his current two year agreement. FILE Nation Media Group
The extension of AccessKenya CEO’s contract after 2015 will be tied to performance, the firm bidding to acquire the firm said Friday.
Nick Reed, managing director, Internet Solution International Ltd—a subsidiary of Dimension Data—said Jonathan Somen will be free to seek a new term based on his current two year agreement.
Dimension Data, which is buying AccessKenya at Sh14 a share or Sh3.05 billion, cut short the CEO’s initial contract that was to run to 2017 after offering the two-year deal.
“We signed an agreement with Mr Somen for two years. The decision as to whether to renew these contracts will be negotiated by both parties at that particular time and it will be natural that we wait until then,” Mr Reed said in a teleconference interview.
His brother David Somen, who is the executive director in the firm, will serve for one year and both have been barred for working for a rival firm within a year of quitting AccessKenya.
Mr Somen is a founder of AccessKenya and has been at the helm of the firm since inception in 2000.
He listed the company at the Nairobi Securities Exchange (NSE) in 2007 and it will be the first time the Somens will be working on board that they have little control of.
AccessKenya will be delisted from the NSE once Dimension Data completes the deal in December and Mr Reed said this is informed by their firm’s acquisition policy of 100 per cent control.
The capital markets regulation required at least 25 per cent of a listed firm shares should be available for trading.
Mr Reed said the AccessKenya acquisition will offer it a fibre optic network that will deepen its quest to capture the corporate data market which it has been serving through its subsidiary firm Internet Solution.
“We have been leasing fibre optic connectivity from third parties and this has proved difficult in serving our customers because we can’t assure them of the quality but with the acquisition we intend to grow the AccessKenya fibre footprint and offer better service,” he added.
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