Okiya kuja kidogo

[Aviator]

There's this story in the Business Daily about Britam selling it's shares at Equity Bank.

Britam to earn Sh14bn from sale of Equity Group shares

Sources familiar with the transaction told Business Daily that IFC will acquire the shares at a price of Sh55 each based on negotiations with the insurer.

www.businessdailyafrica.com

SUMMARY
Sources familiar with the transaction told Business Daily that IFC will acquire the shares at a price of Sh55 each based on negotiations with the insurer.
The private transaction price represents a premium of 10.88 percent on the bank’s closing price of Sh49.6 Tuesday.
Selling at the prevailing market price would have seen Britam pocket only Sh12.5 billion.

Now my questions are,
1) Why would IFC chose to go that route of private negotiations, paying over 10% more, while they could have had a better deal?
2) Is Britam seeing no future in Equity Bank?
3) And most importantest, should senate be concerned?

 

[Mtumsafi]

Also didn't their CEO just leave, after being in office for less than a year? Should policy holders be concerned?

 

[The.Black.Templar]

Good questions up there, i suspect that IFC has negotiated a lot more than just acquiring shares, they have probably negotiated a seat or several seats at the board of equity bank. Also britam may not have been willing to sell their shares but were given an offer that was too good to refuse, hence the private negotiations.

This should be a vote of confidence into equity bank for other investors

 

[Sambamba]

Paying a premium because among other factors you cant get such volumes in the open market

 

[Okiya]

Paying a premium because among other factors you cant get such volumes in the open market

@Aviator the answer here

 

[Notapeoplesguy]

Equity is solid but it makes you wonder is Britam desperate for money ?

 

[Okiya]

Equity is solid but it makes you winder is Britam desperate for money ?

Very true. Last 5 years Britam has had issues. They restated the accounts. There was a new MD who resigned barely one year in office. There was a fraud which whose details were kept undercover. Their investment building in upperhill is not performing as expected.