Centum shareholders give nod to Africa expansion strategy
Shareholders of Centum Investment Company Limited, Kenya’s largest listed investment firm, today approved the company’s expansion strategy by approving the creation of three subsidiaries to drive the process.
The move will see the creation of three subsidiaries namely, Mauritius-based Centum Development Limited, Crested Heights Limited in Uganda, and Centum Exotics Limited. The latter will focus on Private Equity and Quoted Private Equity acquisitions across Africa.
In addition, shareholders approved the company’s plan to list on the Dar es Salaam Stock Exchange and Rwanda Stock Exchange, a move that will pave the way for investors in the region to participate in Centum’s ambitious geographical diversification strategy.
Speaking at the company’s 44th Annual General Meeting held at the KICC, Centum Managing Director James Mworia told shareholders that the firm’s expansion strategy was on track and that the company was eyeing opportunities in diverse sectors across the continent.
“Expanding to other parts of Africa is central to our growth strategy in the period 2009-2014. We will focus on diversifying our portfolio across our three business lines,” said Mr Mworia.
The company’s three business lines are: Private Equity, Real Estate and Infrastructure and Quoted Private Equity.
Centum is currently developing a large property in Runda on the outskirts of Nairobi. The development, at the intersection of Limuru Road and Red Hill Road, will have offices, hotels, retail outlets, schools, recreational parks and residential facilities. The project is part of Centum’s strategy to grow the total investment portfolio to Ksh. 30 billion by 2014. It is currently manages assets of about Ksh. 15 billion.
“The Real Estate and Infrastructure business line is focused on developing world class destinations at its properties in Kenya and Uganda. The focus will be to ensure that value is created through the development process. In addition, the business line is evaluating prospects in the energy sector,” Mr Mworia explained to shareholders.
The company is listed on both the Nairobi Stock Exchange and Uganda Securities Exchange. Cross Listing its shares on the Dar and Rwanda stock exchanges will enable investors to participate in the company’s ambitious African expansion plan.
“One of our goals is to provide investors with access to otherwise inaccessible investment opportunities in Kenya and other countries in Africa,” said Centum chairman, Mr. James Muguiyi.
Mr Muguiyi added, “The Private Equity business line will continue with the value creation initiatives in the investee companies to sustain the growth experienced in the past financial period and will also seek to unlock value through listings and exits.
“The Company’s Quoted Private Equity business line will continue to focus on the stock exchanges across the Sub – Sahara Africa particularly markets characterized by low liquidity.”
Shareholders also approved a bonus share issue at the rate of one share for every ten shares held in line with Centum’s zero dividend policy.
Further, they approved the publication of the annual report and financial statements on the website with prior notification in the newspapers. The move is expected to substantially the costs associated with sending hard copies of the documents to shareholders.