Britam officials at the company’s 24th Annual General Meeting, held virtually on June 29, 2020 at Britam Tower in Nairobi. PHOTO | FILE Kenya’s Capital Markets Authority (CMA) has summoned directors of Britam Holdings Ltd to establish their role in the alleged irregular sale of 452.5 million shares (23.34 percent stake).
The deal which was signed on June 10, 2016, saw Plum Holdings, a company associated with Mr Munga acquire additional 23.34 percent shareholding in the regional insurer at a price of MUR2.4 billion ($54.96 million).
Last year, Britam Holdings Ltd posted a Ksh9.11 billion ($84.35 million) loss blaming it to adverse operating environment occasioned by Covid-19.
Kenya’s Capital Markets Authority (CMA) has summoned directors of Britam Holdings Ltd to establish their role in the alleged irregular sale of 452.5 million shares (23.34 percent stake) owned by the Mauritian government to Kenyan tycoon Peter Munga, the former chairman of Equity Bank, five years ago.
According to the regulator, the regional insurer which is listed on the Nairobi Securities Exchange (NSE) may not have control over the dealings of its shareholders but could have undue influence on the process.
“We have scheduled a meeting with Britam next week (this week) to understand if there are regulatory matters. What we know is that the government in Mauritius feels its officers were comprised when clearing the transaction but our investor indicates that it was based on negotiations,” the authority’s chief executive Wycliffe Shamiah told The EastAfrican in an interview last week.
“We meet next week to establish if there was undue influence. The problem usually is unless the issuer was directly involved in the transactions, shareholders are distinct parties. The listed Company may not have control on the shareholders,” added Mr Shamiah
This comes after an inquiry into the fraudulent transaction revealed that the Mauritian government lost a massive MUR 1.9 billion ($43.51 million) through a deal shrouded in secrecy, with the Mauritian Cabinet being kept in the dark throughout the entire process. Non-existent investors
The deal which was signed on June 10, 2016, saw Plum Holdings, a company associated with Mr Munga acquire additional 23.34 percent shareholding in the regional insurer at a price of MUR2.4 billion ($54.96 million) compared with the market value of the shares estimated at MUR4.3 billion ($98.48 million).
“Basically, Peter Munga, was duping the Kenyans and Mauritians alike because he was astute enough to make a covert deal with the […]
