Kenya’s capital market regulator has given a go-ahead to allow businessman Christopher Kirubi to acquire up to 49.99 percent shares of Centum Investment Company PLC, without having to make a mandatory take-over offer to other shareholders.
A statement from the listed firm notes that the exemption will see Dr Kirubi progressively raise his shareholding in Centum from the current 30 per cent threshold in open market transactions.
According to the billionaire businessman, the intended additional acquisition indicates his “strong vote of confidence in the future prospects and long-term strategic direction of the company,” adding that his target is to acquire the additional shares subject to their availability in the open market.
The exemption to acquire additional shares without triggering a mandatory takeover offer is in line with the CMA’s policy initiative of encouraging unrestricted demand for shares in publicly listed companies, which helps in price discovery of listed stocks.
Dr Kirubi currently sits on the board of Centum as a director and has been a key shareholder of the company for more than 20 years.
The CMA also aims to enable shareholders to continue to publicly support companies that they are already invested in, while facilitating increased market liquidity.
Centum says the exemption has been granted on the condition that all trading in Centum shares shall continue to be in compliance with all regulatory requirements relating to insider trading.
