Munga to sell 23.3% stake in Britam in two years
Billionaire investor Peter Munga has announced that he will sell the 23.3 percent stake he is acquiring in financial services firm Britam Holdings within 24 months.
Mr Munga is buying the 452.5 million shares currently held by the government of Mauritius, through his investment firm Plum Holdings.
According to the businessman, who is also a director in Britam, the decision to buy the shares is expected to offer clarity over the ownership structure of the company.
The government of Mauritius seized the shares previously owned by former Britam Director Dawood Rawat who was accused of running a ponzi scheme in the country.
In a notice to shareholders, Plum clarified that it will seek and identify a strategic investor who will buy the shares within the two-year period.
“It is the intention of the purchaser (Plum) to dispose of the acquisition shares within 24 months of the date that the acquisition shares are transferred to the purchaser,” Mr Munga said.
Plum is yet to disclose how much it is buying the shares for, but are currently valued at Sh6.3 billion based on Britam’s share price of Sh14. The Mauritian government has in the pas said it will be looking to sell the shares at a premium.
Plum Holdings is jointly owned by Mr Munga, Filimbi Limited (an investment vehicle associated with Equity Bank CEO James Mwangi), and Equity Holdings. All three have a stake in Britam.
With the proposed acquisition, Plum and its associates will jointly own 38.54 percent of Britam, making them the majority shareholders.
“The purpose of the proposed acquisition is to allow Britam and its shareholders the time they require to identify a suitable investor,” he said.
Plum expects to conclude the acquisition by the end of July, subject to regulatory approval.
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