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ICDC-owned firm eyes buyouts for growth

Mr Kenneth Muchina, Funguo Investments Ltd chief executive officer. FILE PHOTO | NMG
Mr Kenneth Muchina, Funguo Investments Ltd chief executive officer. FILE PHOTO | NMG 

ICDC majority-owned Funguo Investments Ltd (FIL) says it is looking for acquisitions in the country to boost growth and meet its earnings target.

Chief executive officer Kenneth Muchina said the firm is in advanced talks with two Kenyan medium-sized firms to seal takeover deals.

“One firm is in real estate and another in agri-processing; that is all I can disclose for now,” said Mr Muchina.

FIL’s June 30 financial results show that close to two thirds of its portfolio was made up of investments in non-listed companies in diverse areas including real estate, insurance and manufacturing industries.

Other investments are in stocks at the Nairobi Securities Exchange, Treasury bills and bonds.

FIL net profit for the year ended June 30 jumped to Sh23.6 million from Sh617,721 in a similar period a year earlier.

Total earnings jumped to Sh180.9 million in the period from Sh22.4 million a year earlier.

FIL, bought an additional stake of about two per cent in insurance broker Minet, formerly AON Kenya, last year bringing its total share to eight per cent.

Funguo equity stake in Minet was then valued at Sh384.8 million.

Mr Muchina earlier said the investment was informed by the need to capitalise on Minet’s “strong performance.”

“AON Kenya has had a strong performance record in its business and these are gains we are keen on as we expand our footprint in various portfolio,” Mr Muchina said then.

State parastatal ICDC owns a 19 per cent stake in the company followed by Seta Holdings Ltd at 13.56 per cent.