The International Finance Corporation (IFC) is seeking to restrict Britam's
top owners from selling their stake in the insurance firm for a period
of two years after it acquired a 10.37 per cent shareholding.
Britam
on Friday told stakeholders that it is in talks with the international
financier over a new share retention pact that compels top shareholders
to retain a combined stake of 20 per cent in the firm.
Top
owners including businessman Peter Munga, Britam CEO Benson Wairegi,
Equity Bank CEO James Mwangi and investment banker Jimnah Mbaru have a
combined stake of 53.1 per cent.
“Key shareholders
have also been requested by IFC to enter into a share retention deed
whose provision will include that the key shareholders shall retain an
aggregate shareholding of 20 per cent for two years,” the NSE-listed
insurer said in a circular to its shareholders.
Of
the 53.1 per cent holding, Mr Munga will have a 36 per cent stake after
the entry of IFC, Mr Wairegi (4.64 per cent), Mr Mwangi (3.47 per cent)
and Mr Mbaru (9.01 per cent).
IFC will become the
third largest shareholder in the insurance group with a 10.37 per cent
stake that guarantees it a board seat.
The entry of IFC, whose offer price of Sh15.85,
represents a 58.5 per cent premium on the insurer’s closing price of
Sh10 on Thursday, will dilute existing shareholders by 10.3 per cent.
Britam
said the Sh3.5 billion will be used in closing property deals, fresh
investment in its subsidiaries and revamping its technology to allow it
to deliver its product via digital channels like mobile phones.
Britam has operations in six other African countries including Tanzania, Uganda, South Sudan, Rwanda and Mozambique.
“We
shall roll out new products while opening more branches in Kenya,
Rwanda, Tanzania, Mozambique, South Sudan, Malawi and Uganda as we enjoy
IFC’s 60 year expertise in investing in emerging markets,” said Mr
Wairegi.
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