Africa-focused private equity firm AfricInvest is spending $55 million to take a 14.3% ownership stake in Britam Holdings, a publicly-listed insurance company headquartered in Nairobi. According to the announcement filed with Kenya’s Capital Markets Authority, the proposed transaction is structured through a special purpose vehicle set up on behalf of AfricInvest Fund III, DEG, FMO and Proparco, which will be managed by the Tunis-based private equity firm.
The deal, which is subject to both regulatory and shareholder approval, sees AfricInvest acquire 360.8 million shares in the publicly-listed company for the consideration of KES15.85 per share, a KES0.85 premium on the insurer’s closing stock price on Friday. The price is the same as that paid by the IFC when it made its largest investment an insurer in January this year, taking a 10.37% stake in Britam.
Bowmans provided Britam with legal advisory services on the transaction, with Stanbic Bank Kenya acting as Transaction Advisor for the deal.