Britam stock falls further as zest over IFC investment wears off
Brokers on the trading floor of the Nairobi Securities Exchange. PHOTO | FILE
The Britam Holdings stock continued falling Thursday losing another 5.17 per cent to close at Sh11 as the sentiment over IFC investment wore off. On Tuesday the stock rose 26 per cent to close at Sh12.60.
This came as the NSE 20 share index lost 23.42 points to close at 3170.71. The drop was driven by a 20 cent fall of the Safaricom share to Sh18.80 as well as the decline of major bank counters.
The number of Britam shares traded Thursday fell to 455,400 compared to the 1.16 million on Wednesday. On Tuesday 93,700 shares were traded.
The share had witnessed a sharp rise earlier on Tuesday on the back of news that the International Finance Corporation (IFC) was set to take up a 10.37 per cent stake in the insurer in a Sh3.5 billion deal.
IFC, which is the World Bank’s private investment arm, was willing to pay a premium to acquire 224.1 million shares at Sh15.85 apiece.
Britam said the proposed transaction, which will see the allocation of 224.1 million new ordinary shares to IFC, is subject to approval by regulators and shareholders.
“The proposed subscription is subject to conditions that are customary to transactions of this nature, including receipt of shareholders’ approval and regulatory approvals,” Britam said in a statement.
The insurer did not indicate how it would invest the cash realised in the share sale.
The company last raised Sh6 billion in 2014 through a corporate bond, which will be redeemed in July 2019.
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