Companies

Centum acquires 45pc stake in microcredit firm

centumm

James Mworia, Centum Investment chief executive officer. Listed investment firm Centum has acquired a 45 per cent shareholding in Platcorp Holdings, the holding company of micro-credit organisation Platinum Credit. File

Listed investment firm Centum has acquired a 45 per cent shareholding in Platcorp Holdings, the holding company of micro-credit organisation Platinum Credit.

The acquisition is in line with the company’s strategy to increase its geographical asset diversification across the business' multiple asset classes, according to a notice sent to Nairobi and Kampala bourses.

Platinum Credit, which is a non-banking, non-deposit taking microfinance institution has more than 30 branches in Kenya, 18 in Uganda and 13 in Tanzania as listed on its website, and provides emergency loans to customers.

The acquisition was made through a consortium in partnership with Cassia Capital Partners where Centum owns a 79 per cent shareholding in the consortium vehicle - Kilele Holdings Limited - and Cassia Capital Partners the remaining 21 per cent.

Centum has a portfolio of more than Sh15.4 billion invested across asset classes including General Motors, UAP Insurance, Longhorn Publishers, Coca Cola bottling companies, Aon Minet Insurance brokers and Kenya Wine Agencies Ltd.

The firm recorded a 1.5 per cent growth in net profit to Sh805.6 million in the six months to September as rising interest cost hit income lifted by the recovery of the Nairobi bourse.