Kenyan insurance firms seeking mergers to comply with new capital requirements are ready to accept even less than two times their net-worth or book value, UK and Kenyan investment banks say.
UK-owned Exotix and Equity Investment Bank say that going by the past eight acquisition deals in the sector the firms are willing to cede up to 60 per cent of their shareholding to a new investor if the buyers pay at least 1.7 times the underwriter’s book value, which refers to a firm’s total assets minus its total liabilities.
