The Mauritius Government has agreed to sell the 20.3% percent stake in Kenya’s diversified financial services company, Britam to existing shareholders after seizing it from a disgraced tycoon,Dawood Rawat, it said on Thursday.
The Indian Ocean island seized the assets of Dawood Rawat, a Mauritius citizen, in April 2015 after accusing him of running a Ponzi-like scheme through a Mauritian insurer.
Minister for Financial Services Sudarshan Bhadain told parliament that an offer from another operator “could not go through because the existing shareholders in Kenya were not willing to allow third parties into their company.”
“They came to Mauritius and they said to us that they are willing to buy those shares themselves, this has been done,” Bhadain said in comments posted on Mauritius parliament’s website.
Few weeks ago, Britam CEO Mr Benson Wairegi had urged the local investors to take up Rawat’s stake in the firm,Read story here Britam CEO Benson Wairegi urges local investors to buy Rawat’s 20.3% stake
A memorandum of understanding has been signed between both parties and the minister said the “money is going to hit the bank account this week and then there is a second part which is going to be paid by April 30.”
He did not give further details.
Rawat, who has been in France since last year, has filed a case before the International Court of Arbitration against the government of Mauritius where he is asking for $1 billion in compensation, claiming illegal appropriation of Britam by the state.
Mauritius aims to use the funds from the sale to help repay those who lost money in the Ponzi-like scheme.