Kirubi exempt from making Centum takeover offer

This is the second time Kirubi will be raising his stake in Centum over the past five years/FILE[/caption]
This is the second time Kirubi will be raising his stake in Centum over the past five years/FILE

, NAIROBI, Kenya, Oct 24 – The Capital Markets Authority (CMA) has allowed businessman Dr Chris Kirubi to acquire five percent additional shares at Centum Investment Company without a take-over offer to shareholders.

This makes a clear way for the investor to buy the proposed 32.65 million additional Centum shares, as announced in September.

The move to buy the shares currently worth close to Sh1 billion will push his ownership at the investment firm from 24.99 percent 29.9 percent.

By exempting him not to make a takeover bid, it means that Dr Kirubi will now have to buy the additional shares via the Nairobi Securities Exchange (NSE).

“Capital Markets Authority has by way of a letter dated 14 October 2013 granted him (Dr Kirubi) an exemption from complying with the requirement to make a takeover offer under the Capital Markets (Takeovers and Mergers) Regulations, 2002, with respect to the proposed acquisition of an additional 32,659,909 ordinary shares,” Dr Kirubi said in a public announcement in the local dailies.

Centum’s share price at the close of business on Wednesday at NSE stood at Sh28.50 up from Sh25.50 when he announced the proposed acquisition in September.

The move is seen as a vote of confidence in the investment firm which has raced to diversify and reduce the influence of the NSE on its performance in recent years.

This is the second time Kirubi will be raising his stake in Centum over the past five years.

He bought 6.6 million shares in Centum in the nine months to January.

MARGARET WAHITO :Margaret has been a business reporter for the past four years. She holds a Bachelors of Science degree in Communications and Public Relations from Moi University. She also holds a diploma in Film and Video production from the Kenya institute of Mass Communications. Apart from journalism, she has interest in community work, especially helping the disadvantaged.