Joseph Bonyo
9 August 2010
Nairobi — CfC Insurance Holdings will be listed at the Nairobi Stock Exchange by year-end following approvals by shareholders at an extraordinary general meeting on Monday.
The company spun off from CfC Stanbic Holdings is expected to get the nod from the market regulators Capital Markets Authority and the bourse before then.
"We are already in discussion with the regulators and the stock market and we hope we will get the approvals to list by the end of the year," managing director Mr Kitili Mbathi told shareholders.
The new entity will be listed by way of introduction since they do not need to raise additional capital from the bourse.
It will include the Heritage Insurance Company, CfC Investment Ltd and CfC Life Assurance.
Through the shareholders approval, Liberty Insurance, a South African firm will now find its place in the Kenyan market.
In the deal, Liberty will be the controlling shareholder and core strategic investor in CfCIH with a 56.82 per cent shareholding.
It has already put in Sh880 million as its capital injection in the outfit to secure its stake.
Kenyan shareholders will own 46 per cent of the outfit, the shares being issued on a one to one basis of their current holdings on CfC Holdings.
"This will create a suitable platform and facilitate the introduction of other Liberty products and services into Kenya and the East Africa Region. It will also contribute significantly towards enabling this new company through its subsidiaries to achieve their strategic goals and objectives," said chairman Mr Fred Ojiambo.
Liberty, South Africa's third largest insurance company is a subsidiary of the Johannesburg headquartered Standard Bank Group, which holds a 53.7 per cent stake.
Additionally, shareholders are to receive a 35 cents dividends for every ordinary share held after taxation.
The company has put in Sh205 million to offset this as the firm's gears toward the listing.
According to a circular to shareholders, Mr Jeremiah Kierieni will be the new holdings chairman and Mr Mike du Toit its managing director.