NAIROBI, Kenya May 22- Shareholders of CfC Stanbic Holdings will each have corresponding number of shares in the group’s new insurance company once it is listed on the Nairobi Stock Exchange (NSE).
Managing Director Kitili Mbathi said their shareholders will automatically own a piece of the CfC Insurance Holdings Ltd which is expected to be listed at the bourse by mid this year.
This is one of the proposals to its shareholders that will see the company pay dividends in shares rather than in cash.
“Our proposal will be to spin it off by paying a dividend in shares for every share that they have they will receive a share in the new company. So one for one,” he said.
This he said would give the shareholders the flexibility to decide which part of the business they wanted to invest in.
“It will enable the shareholders to either retain their shareholdings in the bank and in the insurance company. It will give the market the chance to really value the different parts of the business which are currently ramped together,” he added.
The CfC Insurance Holdings was formed after CfC Life Assurance Limited and Heritage Insurance Company Ltd were transferred to the new company.
Mr Mbathi said they are in the process of seeking requisite regulatory approvals after which they will hold the Extraordinary General Meeting where the shareholders would be expected to give them the go ahead. Once they get the green light then they will give a 21 day notice
The MD spoke during a press conference where he announced that the board of directors would meet next week to elect the person who will replace outgoing chairman Charles Njonjo.
Mr Njonjo is retiring from the institution where he has held the position in the last 21 years. The new chairman will serve for a period of five years.
The firm, Mr Mbathi added was now operating under one platform after it completed the implementation of its core banking system following the integration of those used by Stanbic and CFC banks before their merger.