International Finance Corporation(IFC)has entered into a share purchase agreement with Britam to acquire a 4.201% equity or 158, 540,750 shares held by Britam in Equity Holdings.
IFC is already a significant shareholder in Britam with an 8.8 % stake in Britam. The capital gains from this transaction is expected to boost the cash flow and profits of Britam.
Equity Holdings has interests in banking subsidiaries in Kenya, Rwanda, Tanzania, Uganda, South Sudan and the Democratic Republic of Congo as well as non-banking subsidiaries, is listed at the Nairobi Securities Exchange and cross-listed on the Uganda and Rwanda stock exchanges.
IFC is a sister organisation of the World Bank and the largest global development institution focused exclusively on the private sector in developing countries.
The proposed transaction is subject to regulatory approval of the Capital Markets Authority(CMA) and other relevant regulators.
Pending completion of this transaction, shareholders of Britam and other investors are advised to exercise caution while dealing with shares of Britam at the NSE.