In a series of major developments that reflect Centum Investment Company PLC’s strategy to streamline its operations, shareholders have ratified the sale of a portion of the company’s shareholding in Sidian Bank.
Centum, through its subsidiary Bakki Holdco Limited, will retain a 20% stake in Sidian Bank, marking the bank’s transition from being a subsidiary to a minority interest for Centum.
Key Decisions from the Shareholder Meeting:
Sidian Bank No Longer a Centum Subsidiary
The highlight of the shareholders’ meeting was the approval of the partial sale of Centum’s shareholding in Sidian Bank. The company will hold on to a 20% stake, with the bank officially ceasing to be a subsidiary of Centum. This decision aligns with Centum’s focus on refining its banking portfolio while maintaining an interest in the bank’s future potential through a minority stake.
Energy Sector Expansion with Akiira Geothermal Stake
Shareholders also gave their nod to Centum’s acquisition of an additional 37.5% stake in Akiira Geothermal Limited, boosting its total stake and turning Akiira into a Centum subsidiary. This acquisition is in line with Centum’s strategy to expand its footprint in Kenya’s renewable energy sector, specifically in geothermal energy.
Incorporation of Two Rivers Land Company (SEZ)
In a move that promises to solidify Centum’s role in real estate, the incorporation of Two Rivers Land Company (SEZ) Limited as a subsidiary was ratified. This venture is expected to increase Centum’s investments in special economic zones, adding a valuable real estate asset to the company’s portfolio.
Share Buyback Plan
Further demonstrating a commitment to boosting shareholder value, Centum was authorized to buy back up to 65,559,241 shares, representing 10% of its issued share capital. The buyback will be executed through open market purchases at prices ranging between KES 0.50 and KES 9.51 per share, over a period of 18 months.
Re-allotment of Shares
In addition to the buyback, shareholders approved the directors’ ability to re-allot shares bought during the buyback. This authority will last for five years, allowing the company flexibility in managing its capital structure for long-term growth.
These strategic decisions illustrate Centum’s focus on creating value for its shareholders while actively participating in key sectors like real estate and renewable energy. The Sidian Bank exit, in particular, signifies a calculated decision to focus on high-growth areas, while still holding a minority position to capture future banking sector opportunities.
Centum shareholders are also set to receive a dividend of KES 0.32 per share, payable on or about December 13, 2024, as a reward for their confidence in the company’s long-term vision.
As Centum reshapes its business portfolio, these bold moves are set to strengthen its market position in various sectors, providing an exciting outlook for its investors.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
