Britam lists 360.8m shares after PE deal
Britam has received Sh5.7 billion from private equity fund AfricInvest after completing the sale of 360.8 million new shares, which were listed yesterday at the Nairobi Securities Exchange #ticker:NSE (NSE).
Britam will use the funds to accelerate property development, fresh investment in its subsidiaries and revamping its technology to enable it deliver its products via digital channels — such as mobile phones — with an eye on micro-insurance. The NSE yesterday admitted the new shares, equivalent to a 14.3 per cent stake, following the completion of the deal which makes AfricInvest the second largest investor in Britam.
“This is a clear pronouncement of the confidence in which the market holds the long term strategy and management of the company,” said NSE chairman Sam Kimani. The firm’s share price remained unchanged at Sh13.90, valuing the company at Sh35.07 billion up from Friday’s close of Sh30.1 billion.
AfricInvest signed a deal restricting Britam’s top owners from selling their stake in the insurance firm for a period of two years.
The top owners must retain a combined stake equivalent to 14.3 per cent in the firm.
Strategic investors insist on the share lock-up clause when buying into companies to prevent key holders exiting or flooding the market as soon as the purchase deal is concluded. “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 AfricInvest East Africa MD George Odo.
Britam — which has insurance, asset management and property development businesses — has acquired land worth Sh10 billion for its property investments including office block, serviced apartments and malls.
The firm has operations in six other African countries including Tanzania, Uganda, South Sudan, Rwanda and Mozambique.