The Standard Group PLC has received approval from Kenya’s Capital Markets Authority (CMA) to proceed with a KES 1.5 billion rights issue, aimed at strengthening its financial position and accelerating digital transformation across its operations.
Under the approved structure, the media conglomerate will issue a total of 283,661,120 new shares at a price of KES 5.29 per share. The issuance is structured at a ratio of 11 new ordinary shares for every 3 ordinary shares held, in what analysts say is one of the more ambitious recapitalization moves in Kenya’s media sector in recent years.
The rights issue, which was approved by the company’s shareholders on 2nd September 2024, is expected to raise KES 1.5 billion. The Company intends to utilize the fund strategically to settle existing liabilities, secure working capital, and support both organic and inorganic growth. The funds will also drive its digital transformation efforts and strengthen its financial position.
“This approval marks a significant milestone in the Standard Group’s transformation journey,” said Dr. Julius Kipng’etich, Chairman of the Board at Standard Group. “Over time, we have made substantial progress in streamlining operations, reducing costs, and implementing a robust strategic plan aimed at long-term financial resilience.”
The company, which operates several high-profile media brands including KTN News, Radio Maisha, The Standard newspaper, and Vybez Radio, intends to channel the capital injection towards accelerating its digital-first strategy.
Dr. Kipng’etich emphasized that the fresh capital will enable the company to pursue positive financial results within the next 12 months, underscoring confidence in the strategic plan currently being executed by management.
“The approval of this rights issue provides the vital capital injection needed to accelerate our digital-first strategy and push toward positive financial results within the next 12 months. We are grateful for the continued trust and support of our shareholders and stakeholders, and with this approval, we remain confident that the Standard Group is positioned to become a leading force in the ever-evolving media landscape.” he added.
The rights issue also provides an opportunity for long-time shareholders to deepen their investment in the company at a critical juncture, as media houses globally adapt to digital disruption and changing audience behaviour.
The CMA’s endorsement of the rights issue underscores regulatory confidence in the Standard Group’s transformation strategy amid a challenging operating environment for traditional media. Declining print revenue, inflationary pressures, and shifts in advertising trends have hit legacy media outlets hard, prompting a wave of restructuring and digital experimentation across the sector.
Industry watchers have noted that Standard Group’s move aligns with broader trends of recapitalization in African media markets, where companies are increasingly turning to rights issues, private placements, and strategic investors to stay competitive.
The KES 1.5 billion infusion is also expected to stabilize the company’s balance sheet, allowing it to service existing obligations and reduce operational pressure. As part of its ongoing efforts to streamline operations, the company has taken steps to reduce costs, enhance revenue diversification, and explore new business models, including paywall content and brand partnerships.
Notably, the rights issue comes at a time when Kenya’s media industry is seeing growing investor interest in digital-first platforms. The emergence of podcasting, influencer-driven media, and vernacular content has reshaped audience dynamics, making digital transformation no longer optional but essential.
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