Kuramo Capital only last month completed the acquisition of 73.35 per cent shareholding in GenAfrica from Nairobi Securities Exchange-listed Centum Investments.
It has emerged that Kuramo’s deal also involved an additional 17.49 per cent stake in GenAfrica from other undisclosed shareholders after the Competition Authority of Kenya (CAK) revealed last Friday that it had approved a takeover of 90.84 per cent stak
New York-based Kuramo Capital has ruled out buying additional shares in GenAfrica Asset Managers after acquiring 90.84 per cent stake for an estimated Sh2.84 billion.
The deep-pocketed private equity firm only last month completed the acquisition of 73.35 per cent shareholding in GenAfrica from Nairobi Securities Exchange-listed Centum Investments.
It has emerged that Kuramo’s deal also involved an additional 17.49 per cent stake in GenAfrica from other undisclosed shareholders after the Competition Authority of Kenya (CAK) revealed last Friday that it had approved a takeover of 90.84 per cent stake.
“It is notified for general information that in exercise of the powers conferred upon the Competition Authority by section 46 (6) (a)
(ii) of the Competition Act, the Competition Authority has authorised the proposed transaction (of 90.84 per cent shares in GenAfrica),” CAK director-general Wang’ombe Kariuki said in Gazette notice published last Friday.
The Sub-Saharan Africa’s focused Kuramo paid Sh540 million for the additional stake on the same terms as those bought from Centum.
Mr Shaka Kariuki, who heads Kuramo’s Nairobi office, said the remainder 9.16 per cent is in hands of GenAfrica’s top management, including chief executive Charles Ogalo.
“It is important to Kuramo that GenAfrica management remains a shareholder in the company going forward,” Mr Kariuki said via e-mail.
“We, therefore, will not be seeking to acquire additional shares but will continue to work with the management of GenAfrica to grow the business together.”
Kuramo’s deal values GenAfrica at nearly Sh3.135 billion.
“Kuramo’s investment strategy is to partner with strong management teams, such as GenAfrica’s, and leverage on our sub-Saharan footprint to drive value and ultimately realise long-term, sustainable capital appreciation,” Mr Kariuki said.
“We do sometimes take majority stakes in businesses but always rely on the management teams to drive value creation with strategic support from Kuramo.”
The firm, which also operates an office in Lagos, on top holds the single-largest stake in listed loss-making infrastructure developer, TransCentury.
Kuramo further acquired a minority shareholding in investment bank Sterling Capital earlier in the year after buying out former shareholders Ahmed Ndope and John Kirimi for undisclosed value.
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