Longhorn Publishers Limited is set to acquire Law Africa Publishing Ltd after a successful cash call that saw the firm  set aside Ksh70 million ($679,678) to finance local mergers and acquisitions.

In a cautionary statement on Monday the Nairobi Securities Exchange-listed firm said it would be acquiring 74 per cent of the issued share capital of Law Africa for an undisclosed price.

“The proposed acquisition may have a material effect on the value of the shares of the company. The shareholders of the company and the public are accordingly advised to exercise due caution when dealing in the share of the company,” said Simon Ngigi, Longhorn’s managing director.

The transaction is still subject to both shareholder and regulatory approvals.

Law Africa Publishing Ltd is a private legal content publisher and trader in both print and electronic books with operations in Kenya, Uganda and Tanzania.

Last month Longhorn raised Ksh530 million ($5.14 million) in additional capital through a rights issue to fund its growth and expansion plans.

The  funds will be used for the development of new product lines, strengthen working capital, development and creation of digital materials, regional expansion and to finance local mergers and acquisitions, it said.

Investment firm Centum which initially owned 31.25 per cent stake in Longhorn enhanced its shareholding to above 51 per cent, but ruled out the possibility of a takeover.

Currently, Longhorn has operations in Kenya, Uganda, Tanzania, Rwanda, Zambia and Malawi.

Its major rivals in the Kenyan market include Oxford University Press, Kenya Literature Bureau, Moran Publishers, Jomo Kenyatta Foundation and East African Educational Publishers.