Britam Holdings stock down 7.94pc as supply rises steeply
Brokers on the trading floor of the Nairobi Securities Exchange. PHOTO | FILE
Britam’s stock dipped 7.94 per cent Wednesday to close at Sh11.60 after rising 26 per cent Tuesday to close at Sh12.60. Shares traded rose steeply to 1.16 million compared to Tuesday’s 93,700.
The share witnessed a sharp rise earlier on the back of news that the International Finance Corporation (IFC) was set to take up a 10.37 per cent stake in the insurer in a Sh3.5 billion deal.
On Tuesday investors’ attention could have been attracted by the fact that IFC, which is the World Bank’s private investment arm, was willing to pay a premium to get its hands on 224.1 million shares in Britam at Sh15.85 apiece.
The Nairobi Securities Exchange listed firm had announced that IFC was set to invest Sh3.5 billion in acquiring a stake.
Britam said the proposed transaction, which will see the allocation of 224.1 million new ordinary shares to IFC, is subject to approvals by regulators and shareholders.
“The proposed subscription is subject to conditions that are customary to transactions of this nature, including receipt of shareholders’ approval and regulatory approvals,” Britam said in a statement.
