Mauritian billionaire joins nephew on Britam board
Billionaire Dawood Rawat, a Britam director, with CEO Benson Wairegi in 2013. PHOTO | FILE
What you need to know:
Dawood Rawat has joined the board of investment firm Britam
Mr Rawat, the largest investor in Britam with an 18 per cent stake worth Sh5.8 billion, joins his nephew, Moussa Rawat who was appointed a director of Britam in August and Tarun Ghulati, an executive of one of the Rawats’ business units, who joined the board in May
The investor preferred to influence board decisions at the firm through former chairman Nicholas Ashford-Hodges, who was on Friday replaced by former head of public service Francis Muthaura
Mauritian billionaire Dawood Rawat has joined the board of investment firm Britam in the latest directorship changes engineered by the Rawat business empire.
Mr Rawat, the largest investor in Britam with an 18 per cent stake worth Sh5.8 billion, joins his nephew, Moussa Rawat who was appointed a director of Britam in August and Tarun Ghulati, an executive of one of the Rawats’ business units, who joined the board in May this year (2013).
The investor preferred to influence board decisions at the firm through former chairman Nicholas Ashford-Hodges, who was on Friday replaced by former head of public service Francis Muthaura.
The shake-up indicates a push by the Rawat family for deeper involvement in the management of the firm.
The changes have led to the exit of Saleem Beebeejaun, who was replaced as chief executive of British American Investment (BAI),the holding company of the Rawat business empire including its Britam stake.
BAI says Mr Rawat is mainly focused on strategic issues and the development of new business ventures in new markets for the group, with his presence in Britam’s board signaling further expansion plans by the NSE-listed firm.
Recently, Britam has been on an expansion spree, including the planned buyout of rival Real Insurance and the purchase of 25 per cent stake in property development firm Acorn as it looks into real estate and foreign subsidiaries for growth.
“Mr Rawat (Dawood) has been appointed in place of Mr Ashford-Hodges who has stepped down,” said Nancy Kiruki, Britam’s company secretary.
The directorship changes have left the Rawats with four of 11 board positions, with the rest held by local billionaire entrepreneurs who have been long term co-investors with the Mauritian.
Among them are Equity Bank chairman Peter Munga, Jimnah Mbaru (owner of Dyer & Blair Investment Bank) and Benson Wairegi (Britam’s CEO).
BAI was forced to cede a third of its stake in Britam to local investors in 1984 to comply with a government directive to have significant ownership by Kenyans.
Then, at the height of President Moi’s era, Britam was only dealing in insurance as opposed to now when it has property and asset management divisions.
In 2006, Kenyan investors acquired an additional 30 per cent stake from BAI.
It’s not clear at what stage when the current local shareholders, led by Mr Mbaru, Mr Munga, Mr Wairegi and Equity CEO James Mwangi, acquired stakes in the financial services firm.
Despite the twin dilutions, Mr Rawat has remained the single largest shareholder in Britam with 385.5 million shares.
He has been the largest beneficiary of the recent Britam share price rally that saw his portfolio rise by Sh1.1 billion in 11 days on news of the Real Insurance buyout.
The firm’s shares rose from Sh11 on November 18 to the current price of Sh14.25, reflecting a gain of 29 per cent. Mr Munga’s stake gained Sh1 billion to Sh4.6 billion while Mr Mbaru’s grew from Sh2.4 billin to Sh3.1 billion in the 11 days.
One generation
Mr Wairegi’s crossed the Sh1 billion mark to settle at Sh1.4 billion while that of Mr Mwangsi jumped by ShSh243 million to Sh1 billion. Mr Rawat built the $1 billion (Sh85 billion) BAI empire in one generation, starting off as an employee.
He told The Report Company, a UK-based news service, that he joined the firm in January 1970 when BAI, then US-based, opened its subsidiary in Mauritius.
He quickly rose through the ranks and the BAI chairman in 1978 invited him to move to the US to join the corporate head office.
Mr Rawat moved to the US in 1984 as a senior officer and was made president of the worldwide group in 1988. He bought the Britam stake from the US multinational.
“A couple of years later the family that controlled the group decided to divest their interests in the international company and I carried out a management buyout, and as they say the rest is history,” Mr Rawat is quoted in The Report Company.
BAI has a presence in Africa, Middle East and Europe, and has built a strong business relationship with India and China.
