Companies

Munga firm in Britam share transfer deal

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The Nairobi Securities Exchange. Filimbi Ltd cut its stake in Britam to 2.7pc in May from 4.19pc in February. Photo/FILE

An investment vehicle owned by businessman Peter Munga and the wife of Equity Bank CEO has transferred Britam shares currently worth Sh260 million in the three months to May.

Regulatory filings show that Filimbi Ltd, which is owned by Mr Munga and Jane Wangui (the wife of Equity’s CEO James Mwangi), cut its stake in Britam to 2.7 per cent in May from the previous 4.19 per cent in February.

Filimbi, which the two own on a 50:50 basis, reduced its stock of Britam shares to 58.4 million from 90 million, a transaction that saw it drop to the ninth largest owner of the investment firm from position five.

This becomes the second transaction among the top shareholders of the investment firm since its 2011 listing at the Nairobi bourse after investment banker Jimnah Mbaru sold 20 million shares last year and used 60.7 million stocks to secure bank credit.

Mr Mbaru’s shares are currently worth Sh665 million based on Britam’s Friday’s share price of Sh8.25.

The Business Daily could not establish whether the Filimbi transaction was a sale or transfer of the shares to other accounts.

Britam CEO Benson Wairegi referred this newspaper to the firm’s company secretary, Nancy Kiruki, who declined to comment on the share transfer.

“I have noted the change in the portfolio of Filimbi, but cannot comment on the details of the transaction,” she said.

After a sluggish performance last year, Britam’s stock has gained 35 per cent since January when it traded at Sh6.05, opening a widow for investors to harvest part of their investments.

The share shed 14.2 per cent last year in a period that saw the Nairobi Securities Exchange make a return of 28 per cent. But at Sh8.25, the share is trading below the psychological IPO price of Sh9.

The Capital Markets Authority (CMA) had barred Britam’s top seven shareholders from reducing their combined stake in the company to below 51 per cent before August 2013 to offer comfort to new investors who acquired a 30 per cent stake during the listing.

Under the lock-in, Mr Mbaru was allowed to sell a maximum of 80.7 million shares of the 300 million shares he owned after the IPO in the first two years, meaning that the investment banker has exhausted his share sale limit.

The regulator, however, did not offer share sale restrictions to Filimbi Ltd.

Other top shareholders of Britam include Mr Wairegi, Mr Mwangi, Jane Michuki, a managing partner at Kimani & Michuki Advocates, and Dawood Rawat, a foreign national and Britam’s top owner.

Mr Rawat, a Mauritian national, owns 385.5 million shares valued at Sh3.1 billion. The CMA had allowed him to sell up to 103 million shares within the first two years of the IPO.

Mr Munga remains the second largest shareholder having owned 345.1 million shares before the Filimbi transaction with the share being held directly (75 million) and the rest through his shareholding in Filimbi and Equity Holdings, which has a 18.84 per cent stake in Britam. He had a chance to sell up to 80.5 million shares in the two years.

There is close similarity in principal shareholders at Britam and the original Equity owners. Mr Munga and Mr Mwangi are directors and top investors of Britam and sit in the board of Equity bank where they have significant ownership.

Mr Wairegi owns 4.67 per cent of Britam and owns shares worth Sh303 million in Equity where he sits on the board on the strength of his firm’s 10.09 per cent stake in the bank.

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