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The Ndegwa family, renowned for their financial endeavors in Kenya, has extended an offer to acquire retail investors’ shares in property fund ILAM Fahari I-Reit.
The family, heirs to the late Kenyan banking magnate Philip Ndegwa, plans to execute the buyout amounting to Ksh402.4 million ($2.77 million) through their asset management firm, ICEA Lion Asset Management.
The proposed offer of Ksh11 ($0.0757) per unit surpasses the current trading price on the Nairobi Securities Exchange. ICEA Lion Asset Management is poised to secure approximately 36.58 million units (shares) in its pursuit of delisting the property fund. This initiative stands as a decisive move towards restructuring the fund’s ownership.
The bid price marks an impressive 83.3-percent premium over Fahari’s closing price of Ksh6 ($0.0412) observed on Monday. However, it also signifies a 41.3-percent markdown compared to the fund’s net asset value per unit, valued at Ksh18.75 ($0.1289) as of June.
ILAM Fahari I-Reit’s management emphasized that the partial buyout aims to streamline ownership by involving high-net-worth individuals and institutions. This strategic alignment will ensure robust support for the fund’s expansion plans.
In 2021, ICEA Lion Asset Management secured a minority stake of 2.7 percent by acquiring five million Fahari shares. Should the current buyout offer succeed, their ownership will escalate to 22.9 percent.
This latest development from the Ndegwa family follows their earlier strategic investment in the Kenyan financial sector. Their significant involvement in NCBA Group, one of Kenya’s premier financial services providers, demonstrates their commitment to the country’s financial landscape.
The Ndegwa family has recently undertaken substantial acquisitions within the NCBA Group. Their investment vehicle, First Chartered Securities, procured an additional 8.25 million shares for Ksh315.6 million ($2.2 million) earlier this year.
This transaction followed their prominent acquisition of 31.6 million shares, valued at Ksh1 billion ($7.2 million), which established them as the top shareholder in NCBA Group.
As a result of these successive investments, the Ndegwa family’s stake through First Chartered Securities has escalated to 14.94 percent, up from the previous year’s 14.44 percent. The family now owns 246.15 million shares in NCBA Group through First Chartered Securities, boasting a total value of Ksh9.41 billion ($66.25 million).
