Stanlib Fahari I-Reit investor briefing at the Nairobi Serena Hotel on March 29. PHOTO | DIANA NGILA | NMG
Summary
- The two institutional investors participated in Fahari’s fundraising in November 2015 that raised a total capital of Sh3.6 billion which it has used to acquire multiple properties in Nairobi.
- They were previously required to hold all their shares to give confidence to their fellow investors and new prospective buyers of the company’s stock, also known as units.
The International Finance Corporation (IFC) and Liberty Group
are free to sell their shares with a market value of Sh600 million in
property investor Stanlib Fahari I-Reit following expiry of a three-year
lock-in period.
Liberty is a South African insurance firm.
The
two institutional investors participated in Fahari’s fundraising in
November 2015 that raised a total capital of Sh3.6 billion which it has
used to acquire multiple properties in Nairobi.
They were previously required to hold all their shares to give
confidence to their fellow investors and new prospective buyers of the
company’s stock, also known as units.
“As at December
31, 2018, none of the Stanlib Fahari I-Reit issued units were subjected
to any lock-in conditions” the Nairobi Securities Exchange-listed firm
said in its latest annual report.
“Previously, a
three-year lock-in period was applicable to the International Finance
Corporation (―IFC) held through Standard Chartered Nominees (33.9
million units) and the Liberty Group (26.085 million units). This
lock-in period has since lapsed.”
Expiry of the lock-in
period means that Fahari’s entire 180.9 million issued shares are now
considered as available for sale on the Nairobi Securities Exchange
(NSE).
Fahari’s chief executive Nozipho Makhoba told
Business Daily that the two institutional investors have not sold their
shares following the expiry of the lock-in period, adding that the
company “continues to enjoy the support of these key investors.”
Selling at current market prices will see IFC and Liberty realise major losses since they acquired their stock at Sh20 each.
The
units are currently trading at about Sh10 on the NSE, representing a
paper loss of 50 per cent. Fahari has however paid out the bulk of its
earnings to investors over the years in line with its mandate, helping
to mitigate the paper losses.
No comments:
Post a Comment