After a legal battle with the government over a Sh4.7 billion contract, a unit of Japanese multinational Toyota sold its stake in Kenyan information technology firm Seven Seas Technologies.
According to the most recent regulatory filing of Seven Seas with the Registrar of Companies Company, Toyota Tsusho has transferred its entire 9.5 percent stake in recent months.
A 21 percent stake held by private equity firm Actis has also changed hands. The was previously owned by collapsed Dubai-based firm Abraaj.
The shareholder exits followed a two-year legal battle between the government and Seven Seas over the cancellation of the contract to wire 98 State hospitals that, among others, allowed remote treatment or telemedicine.
“The institutional investors exited because of reputational risks. They don’t like drama,” Michael Macharia, the CEO and co-founder of SevenSeas told the said on Monday.
“I bought the shares when the shareholders said they were seeking out,” he added without disclosing the value of the stake sales.
The share purchases have pushed Mr Macharia’s ownership in the tech firm he co-founded in 2001 with Dutchman Rob Van Hoek to near 60 percent.
Toyota Tsusho through its subsidiary, CSV Africa, a venture fund it established in 2014, bought the 9.5 percent stake in 2016 for Sh300 million, valuing Seven Seas at Sh3.2 billion at the time.
Toyota Tsusho described CSV Africa as a fund for social contribution for creating jobs and economic independence in Africa and invested in agricultural projects in Zambia and leather sewing business in Ethiopia.
The funds from Toyota Tsusho were used to expand Seven Seas’ health sector interests.
Toyota Tsusho has had a presence in Africa for nearly 100 years.
