Centum Investments #ticker:ICDC has reached a deal to sell off a controlling 73.35 per cent stake in asset manager GenAfrica to New York-based equity fund Kuramo Capital, making it the second divestiture in a week.
The Nairobi bourse-listed firm is set to book hundreds of millions from the sale, going by GenAfrica’s valuation of Sh1.4 billion in March last year.
The deal follows Monday’s announcement of sale of 25 per cent stake in Platinum Credit, a micro-financier, for a gain estimated in upwards of Sh1 billion.
Proceeds from the sale of stakes in the two firms will boost Centum’s full-year profit for the period ending this month.
The group’s profit for the year ended March 2017 fell 16.46 per cent to Sh8.31 billion.
The deal with Kuramo, is subject to “various” undisclosed conditions as well as approvals from the respective capital markets authorities in Kenya and Uganda as well as the Competition Authority of Kenya.
“We have been in search for an ideal partner who could provide the synergies required for continued growth and expansion, while at the same time ensuring minimum disruption to the business and team,” GenAfrica chief executive Charles Ogalo said in a statement.
Kuramo holds the single-largest stake in listed infrastructure developer TransCentury and a minority shareholding in investment bank Sterling Capital.
GenAfrica managed wealth of about Sh145 billion as at March 2017, returning a profit of Sh141.03 million.
“The sale by Centum of its stake in GenAfrica Asset Managers is in accordance with our vision to be Africa’s foremost investment channel. Centum has, over the years, been able to attract reputable investors into Kenya and the region to invest in extraordinary enterprises,” Centum group CEO James Mworia said.