Consultancy firm demands share of Centum’s Sh17 billion deal

Consultancy firm demands share of Centum’s Sh17 billion deal

Centum Group CEO James Mworia during a past investor briefing/ A financial consultancy that helped Centum Investment Company’s real estate subsidiary Centum Real Estate to raise Sh17 billion through the issuance of new shares wants a share of the money.

Raisin Limited has written to Centum Development Kenya Limited stating it had entered an agreement with the real estate firm on June 17, 2021 terms that Raisin would source for investors and would receive a commission of two percent of all funds raised.

Raisin’s lawyer DBM Mosota wrote to Centum on January 17 saying given the nature of the services sourced it is a fundamental term of the agreement that no party would attempt to circumvent the other in a bid to gain the benefits or considerations under the agreement.

“For any purposes including engaging in any discussions, negotiations or agreement either through itself, affiliates, subsidiaries or any person introduced to it by other parties,” read part of the letter Raisin says it sourced for investors and introduced Global Emerging Markets (GEM) to Centum.

“In blatant breach of clause seven of the agreement, your company through its sole shareholder and directors circumvented the terms of the agreement and commenced negotiations with GEM leading to the execution of an investment agreement of Sh17 billion between Global Yield LLC under GEM and Centum Real Estate Limited,” added the letter.

The letter added from the foregoing, the investment by the private equity firm emerged from the introduction by Raisin in fulfillment of their obligations under the agreement.

Centum Plc managing director James Mworia dismissed the claims terming them an extortion attempt.

“He is a stranger in this deal. We are not aware of his claims. If he is genuine let him show you our correspondences with him,” he said.

The letter added Centum and its agents sought to bypass the terms of agreement by directly engaging with the introduced investors to the exclusion of Raisin in a bid to deny them the commission.

It added Raisin is entitled to Sh340 million which is two per cent of the capital investment.

“We are under instructions to demand from you which we hereby do that within 15 days of receipt of this letter you pay our client the commission of Sh340 million for the successful introduction of GEM,” reads the demand letter in part.Centum had on January 11 revealed the shares will be issued via a new agreement with Luxembourg-based private investment group, GEM […]

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