From left: Britam Holdings director Peter Munga, managing director
Benson Wairegi, chairman Andrew Hollas, NSE chief executive Geoffrey
Odundo and AfricInvest managing director George Odo during the ceremony
yesterday. PHOTO | SALATON NJAU | NMG
Summary
- Britam will use the funds to accelerate property development, fresh investment in its subsidiaries and revamping its technology to enable it deliver its products via digital channels — such as mobile phones — with an eye on micro-insurance.
- The NSE yesterday admitted the new shares, equivalent to a 14.3 per cent stake, following the completion of the deal which makes AfricInvest the second largest investor in Britam.
- Britam — which has insurance, asset management and property development businesses — has acquired land worth Sh10 billion for its property investments including office block, serviced apartments and malls.
Britam has received Sh5.7 billion from private equity fund
AfricInvest after completing the sale of 360.8 million new shares, which
were listed yesterday at the Nairobi Securities Exchange
(NSE).
Britam
will use the funds to accelerate property development, fresh investment
in its subsidiaries and revamping its technology to enable it deliver
its products via digital channels — such as mobile phones — with an eye
on micro-insurance. The NSE yesterday admitted the new shares,
equivalent to a 14.3 per cent stake, following the completion of the
deal which makes AfricInvest the second largest investor in Britam.
“This
is a clear pronouncement of the confidence in which the market holds
the long term strategy and management of the company,” said NSE chairman
Sam Kimani. The firm’s share price remained unchanged at Sh13.90,
valuing the company at Sh35.07 billion up from Friday’s close of Sh30.1
billion.
AfricInvest signed a deal restricting Britam’s
top owners from selling their stake in the insurance firm for a period
of two years.
The top owners must retain a combined stake equivalent to 14.3 per cent in the firm.
Strategic
investors insist on the share lock-up clause when buying into companies
to prevent key holders exiting or flooding the market as soon as the
purchase deal is concluded. “We recognise Britam as a market leader and
hope that the investment will help them achieve the objectives laid out
in their 2016-2020 strategy,” said AfricInvest East Africa MD George
Odo.
Britam — which has insurance, asset management and
property development businesses — has acquired land worth Sh10 billion
for its property investments including office block, serviced apartments
and malls.
The firm has operations in six other African countries including Tanzania, Uganda, South Sudan, Rwanda and Mozambique.
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