Overview:
In a public notice issued on Monday, the regulator said Capital FM (2015) Limited had applied for approval to transfer its nine radio broadcasting licences to Next Media Services through a change in control.
KAMPALA. Next Media Services Limited, the company behind NBS Television, has applied to take full control of Capital FM (2015) Limited in a proposed transaction that would transfer nine radio broadcasting licences to the media company.
The proposed acquisition is subject to approval by the Uganda Communications Commission (UCC), which has invited members of the public and industry stakeholders to submit comments on the transaction.
In a public notice issued on Monday, the regulator said Capital FM (2015) Limited had applied for approval to transfer its nine radio broadcasting licences to Next Media Services through a change in control.
The notice was issued under Section 43 of the Uganda Communications Act and Regulation 102 of the Uganda Communications (Licensing) Regulations 2019.
The proposed transaction would give Next Media control of Capital FM’s radio operations, adding the nine licences to the six broadcasting licences currently held by Next Media Services.
The UCC said the existing shareholding structure of Next Media Services would remain unchanged if the transaction is approved.
Current ownership
Capital FM (2015) Limited is currently owned by five shareholders.
Patrick Quarcoo and William Edward Cathcart each hold 37.6 per cent, while Karuhanga Hannington Rubarenza holds 12.5 per cent.
Samuel Wanzunula Mangaali owns 9.3 per cent and Albert Ayorinde Ajayi holds 2.7 per cent.
Next Media Services, on the other hand, is principally owned by Kin Ibrahim Kariisa, who holds 99.9 per cent of the company. Next Media Group FZCO holds the remaining 0.1 per cent.
If approved, the transaction would therefore bring Capital FM’s nine radio licences under the control of Next Media Services.
Public interest
The regulator said it is required to consider public interest issues when dealing with transfers of broadcasting licences and changes in control.
Section 39(2)(d) of the Uganda Communications Act requires the Commission to take public interest considerations into account when considering such applications.
The UCC has consequently given interested parties 14 days from September 14 to submit written comments on the proposed transaction.
The deadline for submissions is September 28.
The transaction comes against the backdrop of increasing consolidation and competition in Uganda’s media and broadcasting industry, where operators are expanding across television, radio and digital platforms.
For Next Media, the proposed acquisition would significantly expand its presence in radio broadcasting.
The company currently operates NBS Television and other media platforms, while its broadcasting interests include six licences, according to the UCC notice.
Capital FM is one of Uganda’s established private radio broadcasters and has operated for decades, building a national audience through its music, entertainment, news and current affairs programming.
The proposed change in ownership will therefore be closely watched by media industry players, particularly in relation to competition, diversity of ownership and the structure of Uganda’s broadcasting market.
The UCC said written submissions can be delivered to its head office at UCC House, Plot 42–44 Spring Road, Bugolobi, Kampala.
Stakeholders can also submit their views through the regulator’s licensing channels before the September 28 deadline.
The proposed acquisition remains subject to the regulatory process and should not be treated as completed until the UCC grants the required approval.