AfricInvest Group, a Tunisian investment and financial services company has acquired a further stake in insurance group, Britam. The Tunisian group has spent Sh273 million to acquire an extra 32.5 million shares in the insurance firm.
As a result, AfricInvest has increased its stake in the Nairobi Securities Exchange-listed firm to 17.55%. This started in May 2018 with the Tunisian group acquiring a 14.3% stake worth Sh5.7 billion. In addition, the company bought an additional 49.3 million unit of shares worth Sh450 billion during the open market in October 2018.
According to George Odo, senior partner and MD of AfricInvest East Africa, the company has invested with other African insurance companies in the past leading to great success.
“Britam’s regional operations, experienced management team, the entrepreneurial spirit of the key shareholders, and the company’s belief in good governance are the elements that attracted us to Britam. These are the ingredients that we typically look for as Investors. We are very excited about our partnership with Britam and are confident that it will grow into a regional champion and deliver strong returns to the shareholders of the company,” he said.
The share purchases are seen as an opportunity for the institutional investor to take advantage of Britam’s lower share price on the NSE. The insurer in June had a share price of Sh8.4, which represented a 47% decline compared to AfricInvest’s initial entry price.
The Tunisian firm has invested in 150 companies across 25 African countries in high growth sectors such as financial services, agribusiness, consumer/retail, education and healthcare. To date, AfricInvest’s cumulative Assets Under Management total to Sh121. 9 billion ($1.2 billion) which are managed across 18 funds and invested in sectors such as Fintech, logistics, artificial intelligence, agri-business, customer/retail, healthcare, financial services and education.
This continued accumulation of Britam stocks by the AfricInvest is driven by the insurance company’s compelling asset base, a solid regional presence, a strong distribution network and a diversified business strategy. The new infusion of capital is expected to support Britam’s strategy, which includes increased digitalization, development of new products and further consolidation of its presence in the region.