AfricInvest acquires 14 percent stake in Britam

NAIROBI, KENYA: The shares private equity firm AfricInvest bought in Britam Holdings started trading on the Nairobi Securities Exchange (NSE).

The Tunis-based firm bought 360.88 million shares at Sh15.85 per share in a Sh5.7 billion deal that saw it take up a 14.3 per cent stake in the listed local firm.

The conditional share subscription agreement was sealed in September last year and approved by the Capital markets Authority on Friday last week.

Stanbic Bank of Kenya was the transaction adviser.

AfricInvest manages about $1 billion (Sh100 billion) in 14 private equity funds.

It is a special purpose vehicle formed by a consortium of global investors from the Federal Republic of Germany, Netherlands, and France.

NSE Chief Executive Geoffrey Odundo and Britam Holdings Group Managing Director Benson Wairegi rang the bell to officially admit AfricInvest’s shares to the bourse.

Mr Odundo commended Britam for using Kenya’s securities market to strengthen its capital base and fund its expansion strategy.

Capital markets

He said the deal and an earlier one with the International Finance Corporation had had similar effect as an initial public offering by injecting Sh9.2 billion into the capital markets.

“The investment by AfricInvest was well received by your shareholders and the investing public. This is a clear pronouncement of the confidence in which the market holds the long-term strategy and management of the company,” said Odundo.

Mr Wairegi said the investment by AfricInvest would support strategic projects in the firm, including the consolidation of the group’s leadership position in line with its 2016/2020 strategy.

Extensive experience

He said the insurer chose AfricInvest because of its deep financial sector knowledge as well as its extensive experience working with insurance firms across the continent.

AfricInvest East Africa Managing Director George Odo said the firm was keen on supporting economic growth by investing in the financial services sector.

“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 Mr Odo.

AfricInvest has invested in 135 companies in 24 African countries in diverse sectors including financial services, agribusiness, education and healthcare.