Dealmakers scour the NSE for buyouts and fresh capital

The I&M Bank building in Nairobi. The lender listed on the NSE after merging with City Trust. FILE 

By John Gachiri

After a quiet first half attributed to investor uncertainties over the March General Election, the capital market deals front lit up in June, after which more than a dozen multi-billion- shilling transactions took place.

June: I&M Holdings

I&M Bank listed on the Nairobi Securities Exchange (NSE) after completing a reverse take-over that merged businesses of the lender and investment firm City Trust. I&M Holdings is now listed on the NSE’s Main Investment Market Segment and has 392 million issued shares.

The bank’s listing made it easier for trading of its shares, while also opening a platform to raise additional capital.

July: Home Afrika

Home Afrika became the first company to list its shares on the new Growth Enterprise Market Segment (GEMS) board, which has less stringent listing requirements and which was created to encourage the raising of capital by small and medium sized enterprises on the NSE.

The real estate firm, which listed by introduction, placed 405 million shares at a debut price of Sh12 each.

August: Jamii Bora

Jamii Bora Bank managed to raise Sh1 billion through a corporate bond sale, boosting the lender’s plans to expand its mortgage business.

The five-year bond that has a 13.3 per cent coupon rate was mainly taken by institutional and high-net worth individuals who accounted for the Sh802 million (80.2 per cent) of the offer and 19.8 per cent (Sh198 million) respectively.

The bond was sold through a private placement and was structured by Standard Investment Bank. The bank has said that it plans to list on the NSE.

September: CMC and Shelter Afrique

CMC

Dubai-based conglomerate Al-Futtaim Group made a Sh7.5 billion offer to buy out motor car dealer CMC in a deal that will see the firm delist from the NSE.







Shareholders have until January 24 to accept a buyout offer for their shares by the Dubai-based conglomerate.

More than half (50.6 per cent) of CMC shareholders have already agreed to sell their shares.