Two private equity companies have received approval from Competition Authority of Kenya to buy up to 25 per cent of Prime Bank. Catalyst Principal Partners and Africinvestment now own 24.2 per cent of Prime Bank after investing Ksh5.1 billion in the bank. The investment puts the value of Prime Bank at Ksh21.1 billion.
Before the acquisition, Prime Capital was the bank’s largest shareholder with 14.36 per cent shares. Currently, the P.E firms hold the first position; Prime capital comes second, while Prime trustees and Capital Nominees come third with 8.02 per cent of shares.
In a statement, the Bank’s managing director Bharat Jani said, “Prime Bank welcomes this new partnership with AfricInvest and Catalyst, which further strengthens our capital base in order to carry out strategic plans…”
The Prime Bank acquisition is one of several mergers and acquisitions that have occurred recently. Need to boost capital base and reduce operating costs are some of the reasons behind the mergers.