Britam Holdings expects to complete the sale of its 6.7 per cent stake in Equity Group to the International Finance Corporation (IFC) this month, raising Sh13.9 billion from the transaction.
The insurance firm signed an agreement to sell 253.1 million shares of the bank to IFC at a price of kes 55 each.
“We expect to close the transaction at the end of April,” Catherine Karita, director for strategy and investor relations, Britam.
Prior to the agreement to sell the remaining shares to the global financier, Britam had been cutting its stake in Equity by selling shares in the open market.
The sales are due to the insurer’s need to diversify its portfolio and also to comply with regulatory guidelines that cap investment in a bank at 10 per cent of an insurer’s total assets.
Completion of the deal with IFC is expected to boost Britam’s profit in the current financial year.
The insurer posted a Net Profit of Kes 72.1 Million in 2021 reversing a Net loss of Kes 9.1 Billion over a similar period in 2020. The Group’s gross earned premium and fund management fees increased to Kes 32.5 Billion in 2021 from Kes 28.8 Billion in 2020, a growth of 12.8%.
However, the Board of Directors did not recommend the payment of a dividend for the year ended 31st December 2021.