Housing Finance establishes non-operating holding company, Housing Finance Group/FILE
This new development will result to the transfer of the mortgage finance business of the Company to a new subsidiary, HFC Limited.
HFC Limited is licensed to carry on the business of mortgage finance as well as banking services under the Banking Act.
Steve Mainda, the Board Chairman said the new non-operating holding company will give the stimulus to register further growth.
“The re-organization supported by funds from the recent Rights Issue, will give the Group the impetus to register further growth and optimally deliver on its growth strategy,” Mainda said.
Following this approval, the board has appointed Frank Ireri as the Group Managing Director, with responsibility to oversee the HF Group subsidiaries.
Sam Waweru (formally Finance and Administration Director) has been appointed as the Managing Director, HFC Limited.
The Shareholders of the firm will continue to own the same shares that they owned before the re-organization and these shares will remain listed on the Nairobi Stock Exchange (NSE).
He said the Group holding structure will allow for the management and oversight of the group from an entity that is better positioned to raise capital and channel it to the group’s entities as appropriate.
“This restructuring will also present HF Group with an easier route for acquisition and investment. The non-operating holding company will host the group brand and function as a shared service centre for the subsidiaries,” Mainda said.
Plans are now underway to embark on a rebranding exercise to support identity of the new group structure.
“The rebranding exercise will be phased over the next few months and will create a strong brand identity for the group and its subsidiaries. The new capability will allow the group to offer banking, financial, property and investment solutions across the value chain. We are no longer a mortgage company; HF Group presents a financial and property powerhouse,” said Mainda.
The Banking Act permits non-operating holding companies approved and regulated by the CBK to own more than 25percent of the equity of banks, financial institutions and mortgage finance companies whilst also investing subsidiaries engaged in other businesses, hence the reorganization.
“The inauguration of the Group could not have come at a better time; this year, we will be celebrating our 50th anniversary. The Group has embarked on its Vision 2020 strategic plan and has brought on board multinational management consulting firm, McKinsey to support the firm’s next phase of growth and progressively enhancing shareholder value,” the chairman added.
