NAIROBI, July 1 Kenyan diversified financial
services company British American (Britam) said on
Tuesday it planned to buy a 24.75 percent stake in mortgage
provider Housing Finance that is held by Equity Bank.
Britam said in a statement at present it already indirectly
had a stake in Housing Finance and that the acquisition would
increase its shareholding to 46.08 percent once it bought out
Equity Bank's 57.27 million shares.
"Britam and Equity Bank have entered into a share sale
agreement dated June 30 on which terms Equity Bank has accepted
Britam's offer ..." Britam said.
It did not give the value of the transaction.
Britam said the share sale was still subject to approval by
the Capital Markets Authority, the central bank, the National
Treasury and the Competition Authority of Kenya.
Equity Bank, Kenya's biggest lender by depositors, posted a
21 percent rise in first quarter 2014 pretax profit to 5.4
billion shillings ($61.57 million) while that of Housing Finance
rose 13 percent to 316.0 million shillings in the same period.
Britam, which has insurance, asset management and property
development businesses, posted a 12 percent rise in pretax
profit for 2013 to 3.2 billion shillings.
Britam's shares closed trade on Monday up 1.5 percent at
19.90 shillings, while those of Equity Bank finished 1.1 percent
higher at 46.00 shillings.
Housing Finance closed up 3 percent at 42.75 shillings a
($1 = 87.7000 Kenyan Shillings)
(Reporting by George Obulutsa; Editing by Sophie Walker)