Kirubi set to acquire 50 per cent shares of Centum
By Brian George | March 23rd 2020
The capital markets regulator on Monday allowed Dr Christopher J Kirubi to acquire up to 49.99 per cent shares of Centum Investment Company PLC, without having to make a mandatory take-over offer to other shareholders.
The exemption, pursuant to Regulation 5(1) of the Capital Markets Authority (CMA) Takeovers & Mergers Regulations, 2002, will see Kirubi progressively raise his shareholding in Centum from the current 30 per cent threshold in open market transactions.
Kirubi sits on the board of Centum as a director and has been a key shareholder of the company for more than 20 years.
“This intended additional acquisition is my strong vote of confidence in the future prospects and long-term strategic direction of the company,” Kirubi said in a statement.
He added that his target is to acquire the additional shares subject to their availability in the open market.
The exemption to acquire additional shares without triggering a mandatory takeover offer is in line with the CMA’s policy initiative of encouraging unrestricted demand for shares in publicly listed companies, which helps in price discovery of listed stocks.
The CMA also aims to enable shareholders to continue to publicly support companies that they are already invested in, while facilitating increased market liquidity.
“Kirubi is a renowned investor with many years of hands-on experience, his additional investment in Centum is an affirmation of his confidence in the company’s progressive performance,” said the Centum Chief Executive Officer Dr. James Mworia in a statement.
“This is also good news for our stock market, especially coming at a time when the Coronavirus pandemic has created uncertainties, it is an indicator that investors with a long term outlook need not hold back from participating in the bourse,” Mworia added.
The exemption has been granted on the condition that all trading in Centum shares shall continue to be in compliance with all regulatory requirements relating to insider trading.
Centum is East Africa's leading investment company, listed on the Nairobi Securities Exchange and Uganda Securities Exchange.
The company provides investors with access to a wide portfolio of inaccessible, quality, diversified investments
Kenya 7s captain Amonde set to hang up his boots after early exit at Tokyo 2020
- Olympics: New Zealand beat Kenya in women’s rugby sevens
- Olympics: Kenyans can relax as there was no typhoon
- Why Kenyan trio may not win 3000m steeplechase tomorrow
Missing student found dead at university grounds
- Raila agrees to share political party billions with Wiper, other parties
- Unknown people were tracking Wycliffe Omwenga
- Fanfare as Raila meets musicians
By Betty Njeru
- Letter from Ithanga: Murang’a’s unexploited agricultural Canaan
By XN Iraki
- The four options for Kalonzo in 2022 succession