Malkiat Singh to earn 12pc royalties in Longhorn buyout

From left, writer and publisher Malkiat Singh, Longhorn managing director Musyoki Muli and Job Muriuki, a Longhorn director, during the launch of a book series in Nairobi October 9, 2013. Photo/DIANA NGILA  Nation Media Group

By Mugambi Mutegi

In Summary

• Longhorn said it has concluded the deal that will see Mr Singh receive Sh83 million in cash and royalties from the sale of his books—which are expected to generate about Sh200 million annually or more than 20 per cent of its year sales.
• Mr Singh, 75, will earn about Sh24 million annually in the short-term and will see Longhorn add 43 titles to its stable.
• The revamped Malkiat Singh series will be sold in regional markets of Uganda, Tanzania, Rwanda, Malawi, South Sudan, Tanzania and Ghana.

Iconic publisher Malkiat Singh is set to earn royalties of 12 per cent from his works that have been acquired by Longhorn Publishers.

The Nairobi bourse-listed publisher Wednesday said it has concluded the deal that will see Mr Singh receive Sh83 million in cash and royalties from the sale of his books—which are expected to generate about Sh200 million annually or more than 20 per cent of its year sales.

This will earn Mr Singh, 75, about Sh24 million annually in the short-term and will see Longhorn add 43 titles to its stable.

Mr Singh has over the past 30 years evolved into a recognised brand in Kenya’s textbook publishing with revisions being his strength besides the more than 20 titles approved by the State under the Free Primary Education textbook (FPE) project.

The buyout does not include the purchase of Mr Singh’s publishing house, Dhillon Publishers and restrict him from publishing with Longhorn rivals over the next decade.\

READ: Longhorn Publishers buys out Malkiat Singh

“We will be offering Mr Singh a royalty rate of 12 per cent on net sales which is slightly higher than the average of 10 per cent,” said Longhorn managing director Musyoki Muli.

“The publisher was experiencing some challenges in marketing the brand; challenges which we hope to overcome through the rebranding that we have just carried out and backed with vigorous marketing.”

The revamped Malkiat Singh series will be sold in regional markets of Uganda, Tanzania, Rwanda, Malawi, South Sudan, Tanzania and Ghana.

Longhorn posted a profit of Sh93.9 million in the year ended June compared to a loss of Sh22.5 million in the same period last year when sales dipped 30 per cent to Sh775.9 million. The sales for the year to June stood at Sh1.03 billion.

READ: Longhorn rises to profit, warns on VAT

The buyout of Malkiat Singh marks Longhorn’s third acquisition of a rival publisher in recent years.

In 2007, it bought out Sasa Sema Publications for Sh22 million, acquiring 28 titles made up of Swahili comic books and junior biographies of African historical figures.

It currently has 66 English and Kiswahili titles under the Sasa Sema imprint which specialises in non-text book materials such as dictionaries, kamusi, novels, plays, biographies and general knowledge books.

In January 2012, Longhorn completed a Sh12.5 million takeover of Dar es Salaam-based Delah Publishers to grow its revenues in Tanzania where it has a market share of 10 per cent.