Flame Tree appoints Ireri to the board ahead of NSE listing

Flame Tree Group has appointed Housing Finance managing director Frank Ireri to its board ahead of listing by introduction likely to take place in November.

The consumer goods and plastic tank manufacturer said it picked Mr Ireri as a non-executive director and George Theobald as the chairman, a listing requirement by the Nairobi Securities Exchange (NSE).

Mr Theobald is the managing director of Tatepa Group, a Tanzanian agro-processor that is listed on the Dar-es-Salaam Stock Exchange.

The appointments are meant to strengthen the firm’s corporate governance and give Flame Tree access to technical skills and wider networks it needs to expand its various business lines.

“They are bringing extensive industry and corporate governance experience to the team,” said Flame Tree chief executive and founder Heril Bangera in a statement.

“And they buy into our vision to be the leading consumer manufacturing operation in the region.”

Flame Tree has three divisions cutting across manufacturing of plastic goods, fast moving consumer goods (FMCG) and trading.

The plastics division manufactures the flagship Roto Tanks brand which controls 20 per cent of the market, Mr Bangera said in an earlier interview.

Mr Ireri identified this division as being well positioned to take advantage of the region’s housing boom.

“The major economies in Eastern Africa are net importers of plastics for construction and Flame Tree Group is well positioned to bring on local production capability,” said Mr Ireri in a statement.

“I have no doubt that the FMCG and cosmetics business will continue to expand in light of East Africa’s population growth and increasing urbanisation.”

Flame Tree listing will make it the first manufacturing company to list on the NSE’s Growth Enterprise Market Segment (GEMS).

READ: Roto tank and Zoe lotion maker plan NSE listing

Burbidge Capital, the nominated adviser on the listing, said details such as the price and how many shares would be on offer would be provided once the listing statement is out in the next few weeks.

Chief executive Edward Burbidge, however, said the majority shareholders would have a two-year lock-in period. This prevents owners from bolting out immediately for the comfort of the new shareholders.

Coulson Harney is the legal adviser while PKF Kenya is the reporting accountant. Viva Africa is the group’s structuring consultant and Levanter Africa are handling communications and marketing.

Empire Microsystems and East African Data Handlers are the other companies lining up to list on the GEMS by the end of the year joining real-estate company Home Afrika that listed in mid-last year.