Private Equity 2025

KENYA

Ethiopia

Somalia

Uganda

Kenya

Law and Practice Contributed by: Sammy Ndolo, Njeri Wagacha, Brian Muchiri and Deborah Sese Cliffe Dekker Hofmeyr

Nairobi

Tanzania

Contents 1. Transaction Activity p.347

1.1 Private Equity Transactions and M&A Deals in General p.347 1.2 Market Activity and Impact of Macro-Economic Factors p.347 2. Private Equity Developments p.348 2.1 Impact of Legal Developments on Funds and Transactions p.348 3. Regulatory Framework p.351 3.1 Primary Regulators and Regulatory Issues p.351 4. Due Diligence p.354 5. Structure of Transactions p.355 5.1 Structure of the Acquisition p.355 5.2 Structure of the Buyer p.355 5.3 Funding Structure of Private Equity Transactions p.355 5.4 Multiple Investors p.355 6. Terms of Acquisition Documentation p.355 4.1 General Information p.354 4.2 Vendor Due Diligence p.354 6.3 Dispute Resolution for Consideration Structures p.356 6.4 Conditionality in Acquisition Documentation p.356 6.5 “Hell or High Water” Undertakings p.357 6.6 Break Fees p.357 6.7 Termination Rights in Acquisition Documentation p.357 6.8 Allocation of Risk p.357 6.9 Warranty and Indemnity Protection p.357 6.10 Other Protections in Acquisition Documentation p.358 6.11 Commonly Litigated Provisions p.358 7. Takeovers p.358 7.1 Public-to-Private p.358 7.2 Material Shareholding Thresholds and Disclosure in Tender Offers p.358 7.3 Mandatory Offer Thresholds p.359 7.4 Consideration p.359 6.1 Types of Consideration Mechanism p.355 6.2 Locked-Box Consideration Structures p.356

7.5 Conditions in Takeovers p.359 7.6 Acquiring Less Than 100% p.360 7.7 Irrevocable Commitments p.360

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