Britam Group Managing Director Benson Wairegi. [Photo/dhahabu.co.ke]Equity Fund AfricInvest has injected Sh5.7 billion to buy 360,888,281 million new ordinary shares, which is equivalent to 14.3 percent stake in Britam Plc at a subscription price of Sh15.85 per share.
Britam Plc shareholders have approved the acquisition. Upon completion of the subscription, which is yet to be approved by the Capital Markets Authority, AfricInvest will hold a 14.3 percent stake in Britam. AfricInvest is a Pan African Private Equity fund, which manages about $1 billion (Sh103.6 billion) in 14 private equity funds.
It is a Special Purpose Vehicle (SPV) formed by a consortium of global investors from the Federal Republic of Germany, Netherlands, and France.
Speaking during the Annual General Meeting, Britam Group managing director Benson Wairegi (pictured) said the investment by the private equity fund makes AfricInvest a strategic partner in the business.
Wairegi said the funds would be used to support strategic projects, including consolidation of the group’s leadership position across its various businesses in insurance, asset management and property in line with the company’s 2016-2020 strategy.
“We indicated to partner with AfricInvest because of its familiarity with the monetary sector as well as their wide involvement working with indemnification firms through the continent. We also have faith that this conglomerate will result in unraveling higher investor value,” said Wairegi.