IFC moves to block top Britam shareholders from selling stakes

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IFC moves to block top Britam shareholders from selling stakes

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BUSINESSMAN PETER MUNGA, EQUITY GROUP CHIEF EXECUTIVE JAMES MWANGI AND BRITAM CEO BENSON WAIREGI. PHOTOS | FILE 

IFC moves to block top Britam shareholders from selling stakes

The International Finance Corporation (IFC) is seeking to restrict Britam‘s top owners from selling their stake in the insurance firm for a period of two years after it acquired a 10.37 per cent shareholding.

Britam on Friday told stakeholders that it is in talks with the international financier over a new share retention pact that compels top shareholders to retain a combined stake of 20 per cent in the firm.

Top owners including businessman Peter Munga, Britam CEO Benson Wairegi, Equity Bank CEO James Mwangi and investment banker Jimnah Mbaru have a combined stake of 53.1 per cent.

“Key shareholders have also been requested by IFC to enter into a share retention deed whose provision will include that the key shareholders shall retain an aggregate shareholding of 20 per cent for two years,” the NSE-listed insurer said in a circular to its shareholders.

Of the 53.1 per cent holding, Mr Munga will have a 36 per cent stake after the entry of IFC, Mr Wairegi (4.64 per cent), Mr Mwangi (3.47 per cent) and Mr Mbaru (9.01 per cent).

IFC will become the third largest shareholder in the insurance group with a 10.37 per cent stake that guarantees it a board seat.

The entry of IFC, whose offer price of Sh15.85, represents a 58.5 per cent premium on the insurer’s closing price of Sh10 on Thursday, will dilute existing shareholders by 10.3 per cent.

Britam said the Sh3.5 billion will be used in closing property deals, fresh investment in its subsidiaries and revamping its technology to allow it to deliver its product via digital channels like mobile phones.

Britam has operations in six other African countries including Tanzania, Uganda, South Sudan, Rwanda and Mozambique.

“We shall roll out new products while opening more branches in Kenya, Rwanda, Tanzania, Mozambique, South Sudan, Malawi and Uganda as we enjoy IFC’s 60 year expertise in investing in emerging markets,” said Mr Wairegi.

Source:http://www.businessdailyafrica.com/

IFC moves to block top Britam shareholders from selling stakes Reviewed by on March 25, 2017 .

Share thisFacebookTwitterPinterestEmailWhatsAppBUSINESSMAN PETER MUNGA, EQUITY GROUP CHIEF EXECUTIVE JAMES MWANGI AND BRITAM CEO BENSON WAIREGI. PHOTOS | FILE  IFC moves to block top Britam shareholders from selling stakes The International Finance Corporation (IFC) is seeking to restrict Britam‘s top owners from selling their stake in the insurance firm for a period of two years after it

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