Centum acquires majority stake in K-Rep Bank

James Mworia , Centum investment chief executive officer. Photo/File
James Mworia, Centum investment chief executive officer. Photo/File 

Centum Investment Company has reported 37.8 per cent growth in half year net profit to Sh1.23 billion on the same day it also announced completion of the acquisition of an additional 60 per cent stake in K-Rep Bank.

Centum saw its investment income in the six months to September hit Sh1.89 billion, a 58.8 per cent growth from last year’s Sh1.19 billion, earnings brought about by a consolidated group portfolio whose current value is Sh32 billion. The firm also has Sh176 billion of third party assets under management.

The investment firm, which is listed at the Nairobi Securities Exchange, has successfully acquired a controlling stake in K-Rep Bank, raising its shareholding from 7.54 per cent to 67.54 per cent. It had been a minority shareholder in K-Rep since 2004.

“The completion of the acquisition of a controlling interest in K-Rep is in line with Centum’s strategic objective of expanding our presence in the financial services sector,” Centum said in a statement. “We intend to reposition the bank by revamping its strategy and help it to grow to a strong tier two bank.”

A statement to the media confirms the deal was completed after payments were made, approval from relevant regulators obtained and documentation finalized.  

“The acquisition has been effected through Bakko Holdco Ltd, a non-operating holding company,” the investment firm said, adding that the deal helps grow its presence in the financial services sector.

K-Rep, a bottom-tier player with Sh13.7 billion in total assets as at June 30 this year, has 36 branches and over 200,000 largely small-business customers.