A unit of Japanese multinational Toyota has sold its stake in Kenyan information technology firm Seven Seas Technologies; after the company went into a legal fight with the government over a Sh4.7 billion contract.
The latest regulatory filing of Seven Seas with the Registrar of Companies Company shows that Toyota Tsusho has transferred its entire stake of 9.5 percent 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 Business Daily.