Making the announcement, Board Chairman Francis Muthaura said the finances are aimed to provide long term funding for Britam’s future strategic growth through local and regional expansion, private equity investments and property investments.
“Our deliberate move to diversify our services has been successful and we have witnessed exponential growth across the business. This transaction will enable the organisation to amplify these efforts across all markets we are operating in,” he said.
He said the new funding will help them tap emerging opportunities across the region in tandem with their business strategy.
“We are seeing great opportunities in the region in areas of property, private equity and expansion into new markets. We are progressing well with our current investments including the construction of the iconic 31-storey premium commercial property, expected to be completed by 2016,” he said.
Dyer and Blair Investment Bank Limited has been appointed the lead arranger and placing agent, while PriceWaterhouseCoopers and Coulson Harney have been appointed the reporting accountants and legal advisors respectively.
Hill+Knowlton Strategies will act as communications advisor, Image Registrars Ltd as fiscal Agency and registrar, while Ropat Trust Company Ltd will be play the role of Note Trustee.
“This transaction requires that we put in place a team of experts that will engage various stakeholders including the regulators, institutional investors and the investing public. We are confident that the assembled team will successfully steer the process within the stipulated time,” said Muthaura.
The group has been involved in various strategic growth ventures including recent acquisitions, of a 25 percent stake in Acorn, a real estate development and property management group and a 99 percent stake in Real Insurance, which is expected to be concluded by the second half of this year.
The group is also seeking approval to list on the Nairobi Securities Exchange (NSE) its three flagship funds via an Exchange Traded Fund (ETF) structure.
The three funds under consideration for listing include the Equity Fund, Balanced Fund and Money Market Fund. The company anticipates the listing process would be completed within the next three months.
Britam plans to retain the responsibility for redemption and creation of units to ensure existing unit trust holders are not disadvantaged.