By BD REPORTER
Pan Africa Insurance
has increased its shareholding in fund management company Sanlam
Investment by a tenth, raising its stake in the firm to 27.5 per cent
The Nairobi Securities Exchange listed insurer
bought the additional shares in the first quarter of this year, chief
executive Tom Gitogo said in an interview.
“We have in quarter one this year increased the
holding to 27.5 per cent as we believe in the future of fund management
in this region,” said Mr Gitogo.
Pan Africa bought a 17.5 per cent stake in Sanlam
for Sh3.8 million in 2008, in a deal that at the time valued the fund
management company at Sh21.7 million.
Mr Gitogo said that five years on, Sanlam’s
valuation is “different”, but he did not disclose the transaction price
for the latest deal.
“The fair value of the company is primarily driven
by the performance fee earned and the volatility of the market makes it
difficult to estimate the fair value based on future discounted cash
flows,”
Pan Africa Insurance disclosed in its latest annual statement for the year ended 2012.
Both firms have common shareholding in South
Africa’s Sanlam, a financial services group that is listed at the
Johannesburg Stock Exchange and Namibian Stock Exchange.
Sanlam, the parent company, owned 55.7 per cent of
Pan Africa Insurance as at the end of 2012 through an entity named
Hubris Holdings Ltd.
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