Centum Investment Co. Ltd. disclosed a new partnership with U.S.-based Kuramo Capital Management LLC that will see the latter acquire a majority stake in pension fund manager GenAfrica Asset Managers Ltd.
The deal is subject to various conditions and regulatory approvals from the respective capital markets and retirement benefits authorities in Kenya and Uganda, as well as the Competition Authority of Kenya.
The acquisition of the stake, which is understood to be 73.35%, is set to generate hundreds of millions for Kenya-based investment firm Centum based on GenAfrica Asset Managers' valuation of 1.4 billion Kenyan shillings as of March 2017, Business Daily Africa reported.
Meanwhile, Centum Investment said it has completed the sale of a 25% stake in Platcorp Holdings Ltd. to Suzerain Investment Holdings Ltd., a consortium of Platcorp's management team and an existing shareholder. The deal is estimated to generate proceeds of more than 1 billion shillings, according to Business Daily Africa.
Platcorp Holdings is the holding company of Platinum Credit, a nonbanking and non-deposit taking microfinance institution that provides emergency loans to customers and operates in Kenya, Uganda and Tanzania.
Proceeds from the sale of the two transactions are expected to strengthen Centum Investment's profit for the year to March-end, Business Daily Africa noted.
As of March 20, US$1 was equivalent to 101.10 Kenyan shillings.