News Column

Shareholders Clear Britam's Real Takeover

February 20, 2014

Lola Okulo

BRITISH American Insurance Company says its likely to complete the takeover bid for underwriter Real Insurance by end March as it eyes entry into new markets and growth of its general insurance portfolio.

Under the deal which shareholders approved yesterday during an extraordinary general meeting held in Nairobi, the owners of Real who will be paid partly cash and the rest through share allocation stand to make a huge gain.

"When we made the agreement the price per share was at Sh11.93 it is now at Sh19...they stand to make a windfall," BRITAM group MD Benson Wairegi said yesterday.

Britam will pay Sh1.38 billion for the 60 per cent stake and the remainder will be paid in form of 39 per cent shares to owners of Real Insurance Limited who stand to gain over 46.9 million shares in the deal.

Real had assets valued at Sh4 billion as at first half 2013 and with its acquisition, Britam said it will achieve number two position in the market with a share of 10 per cent up from current 7.6 per cent.

Under the deal, Britam will also acquire 55 per cent of Real Insurance's business in Tanzania, 65 per cent in Malawi and 100 per cent in Mozambique.

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Source: AllAfrica

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