Liberty Holdings seeks to raise stake in local subsidiary to 73.5%

Parent firm to locally based underwriter Liberty Kenya- Liberty Holdings Limited has sought to raise its stake in the subsidiary to 73.5 per cent from the current 57.7 per cent.

The holding entity incorporated in South Africa has filed a notice to acquire the additional 15.7 per cent stake or about 84.2 million shares with the Capital Markets Authority (CMA).

Liberty Holdings plans to acquire the bulk of shares at 49.5 million shares from the Conrad N. Hilton Foundation and Frontier Capital and a further 34.7 million shares from the Coronation Africa Frontiers Frontiers Fund.

Liberty Kenya is the beneficial owner of two operating subsidiary companies including Liberty Life Assurance Company Kenya Limited and Heritage Insurance Company Kenya Limited.

The share acquisition will occur via a private transaction in what Liberty Holdings terms as a move to ensure an efficient and orderly acquisition process.

Further, the firm says a greater stake in Liberty Kenya affirms its commitment to the economies in Kenya and Tazania under which the subsidiary operates.

Liberty has valued the pair of transaction at a combined Ksh.926.6 million or an equivalent Ksh.11 per share.

Liberty Holdings does not however intend to buy out the minority shareholders after the transaction or de-list the firm from the NSE.

“Liberty Holdings intends to continue to provide management and technical support to Liberty Kenya following completion of the proposed acquisitions and does not envisage any changes to the Board of Directors and management team of Liberty Kenya as consequence of completion of the proposed acquisitions,” the company said in a statement on Friday.