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How The Failed Ghafla Acquisition by Ringier Transpired: Majani Speaks

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Social Networking. Private Message Box. Young African Sports Club.Ghafla Kenya was going to become the first media exit from the startup space in Kenya.

Till it was not.

ghafla app

They went on to start a blog by called Mpasho and poached almost all of his team. We caught up with Majani at a recent event hosted by Metta where he decided to tell his story from start to end and even took questions. It all started with him having a strong desire to sell. He was desperate after getting tired of running the business which was taking a toll on him with him doing quite a lot of the management work.

He called himself the janitor at Ghafla, having to deal with things as small as restocking of tissue paper. And thus he embarked on a journey to contact companies he considered big enough to want to buy, and big enough to afford his asking price.

Yes, he had an asking price in what he expected was going to be a bid war. A bit on that shortly. Among the companies reached out to was Ringier, via the Ringier Africa CEO on Facebook, and this bore some fruit, or so he thought then. In a few days the Ringier representative would be flying South from Switzerland to talk to Majani.

And they met. Majani even made a point to take him on a tour of the office, that also included inviting him over to his own house. The offer was made by Majani to Ringier, and the response was that it sounded good. He was not to speak to any other companies about the sale as long as Ringier was interested. Until the deal either closed or talks canceled. And thus the quoted amount was the highest things could go.

Next started the phase where Majani was saying yes to everything, the first yes was to exclusivity. Ringier had their first leverage and it started getting interesting. This took away all the negotiating power Majani thought he had.

ghafla app

Ringier also wanted to deal with a company that had been compliant with everything from day one. Remember Majani is just saying yes, but there was a bit of back and forth at this point, Ringier being the ones not sure they still wanted to buy. Majani was getting more desperate.Kenyan-based Burundian singer Jean-Pierre Nimbona, alias Kidum, has released a song to make the public informed about the deadly corona virus pandemic that has left more than Rapper Nyamari Ongegu, popularly known as Nyashinski and formerly of Kleptomaniax, has released a new jam and it's really dope.

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ghafla app

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