By JOHN NJIRAINI
South African firm Liberty Holdings is set to acquire a majority shareholding in CFC Insurance Holdings (CFCIH) after securing Government approval.
Finance Minister Uhuru Kenyatta has given the deal the greenlight in a notice contained in the Kenya Gazette, paving the way for Liberty Holdings to enter the local market it has been eying in recent years.
"In exercise of the powers conferred by section 31 of the Restrictive Trade Practices, Monopolies and Price Control Act, the Finance minister authorises the proposed takeover of CFCIH by Liberty Holdings Limited," said the notice.
This comes barely three weeks after CFCIH shareholders approved the transaction during an extraordinary general meeting early this month.
Hurdles removed
With hurdles removed Liberty Holdings will acquire 57 per cent shareholding in CFCIH at an undisclosed amount.
CfCIH, a leading life, health and general insurance group consist of CfC Life Assurance and The Heritage Insurance Company.
Liberty Holdings, which is South Africa’s Standard Bank insurance arm and is the third-largest insurer in the country, will also bolster its African footprint.
"Liberty has made clear its strategic intent to grow its business within Africa’s key economies, leveraging off Standard Bank’s presence and to develop a presence in East Africa," said Chief Executive Bruce Hemphill late last year.
political stability
He said the decision to enter the local market was informed by the country’s stable political and regulatory environment and strong potential for greater penetration of wealth products.
It will also provide Liberty with a platform for organic and acquisitive growth in the Kenya market and the wider East African region.
CFCIH, which was hived from CFC Stanbic Holdings, has announced plans to list at the Nairobi Stock Exchange before January subject to approvals from the Capital Markets Authority.
"We are in talks with the CMA and the NSE to obtain approvals to list by the end of the year," said Managing Director Kitili Mbathi.
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