Businessman Chris Kirubi (pictured) is set to pay about Sh3 billion for an additional 19.9 per cent shareholding in Centum, as he eyes increasing his stake to nearly half of the investment company.
Mr Kirubi, who currently holds 30 per cent shareholding in Centum, has received an exemption from the Capital Markets Authority (CMA) to increase his shareholding at the firm to 49.9 per cent, without having to make a mandatory takeover offer to other shareholders.
He will buy the additional shares from other shareholders selling at the Nairobi Securities Exchange (NSE) over time.
Centum, in a statement yesterday, said the exemption by CMA would see Kirubi progressively raise his shareholding in Centum in open market transactions.
“This intended additional acquisition is my strong vote of confidence in the prospects and long-term strategic direction of the company,” said Kirubi, who is also the chair at Centum.
“This is also good news for our stock market, especially coming at a time 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,” said Centum Chief Executive James Mworia in a statement.
Share price
Kirubi owns 28.94 per cent (192.56 million shares) of Centum and holds another 1.57 per cent (10.44 million) through his International Life House Ltd.
This translates to about 30 per cent stake in the firm valued at Sh4.42 billion going by the Centum’s share price of Sh21.75 last Friday.
Increasing his stake to 49.9 per cent would mean acquiring another 132.4 million shares worth about Sh2.88 billion.
The exemption is on condition that all trading complies with regulatory requirements of insider trading.
