Nairobi-based insurance multinational, Britam is set to raise Sh5.7 billion ($55 million) from the sale of a 14.3 percent stake to private equity investor Africinvest.
The Tunis-based multinational will buy 360.8 million Britam shares at Sh15.85 each, matching the price at which the International Finance Corporation (IFC) recently acquired 224.2 million shares or a 10.37 per cent stake in the insurer for Sh3.5 billion, Business Daily Africa reported on Tuesday.
“Upon completion of the subscription, the investor (Africinvest) will hold approximately 14.3 per cent of the issued ordinary shares of the company,” Britam said in a statement.
“The subscription is subject to conditions that are customary to transactions of this nature, including shareholders’ and regulatory approvals.”
Africinvest’s entry brings Britam’s total fundraising to Sh9.2 billion but will see the Nairobi-listed insurer inch closer to its fund-raising cap and its ability to raise additional funds from selling shares in the short term due to a condition from IFC when it invested in Britam in December last year.
According to Business Daily, IFC’s investment came with conditions that capped the amount the insurer could raise from issuing new shares to another investor at $60 million (Sh6.1 billion).