Britam stock unfazed by largest owner’s link to a Ponzi scheme
Mr Dawood Rawat whose Bramer Banking Corporation in Mauritius has allegedly been linked to a Ponzi scheme.
Photo credit: File | Nation Media Group
British American Investments (Britam) share has largely shrugged off news of its largest shareholder being embroiled in a Ponzi scandal in Mauritius.
On Thursday the share traded at an average Sh25.25 down just 75 cents compared to the average price last Thursday when the scandal broke.
The marginal fall in price could also have been caused by the fact that the company closed the books for the payment of a 30 cent dividend on April 3.
Payment of the dividend is scheduled for April 30. Investors appeared to have been calmed by a notice put out by the Britam management stating it was completely separate from Bramer Banking Corporation, which was accused by Mauritian authorities of involvement in a pyramid or Ponzi scheme.
The bank is owned by Dawood Rawat who is the single largest shareholder at Britam with over 20 per cent stake.
A Ponzi scheme involves promise to pay unrealistically high returns for cash investment with new members paying for the older ones until it becomes impossible to pay anyone as no new people join in. Those who have paid into the scheme lose their cash.
The Mauritian government will nationalise the bank after its licence was withdrawn.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
