No word yet on sale of stake for top Britam investor

What you need to know:

  • Britam Group Managing Director Benson Wairegi said the firm was yet to get any indication on whether and how soon the Mauritius government would sell the stake it took over from Mr Rawat.
  • Mr Rawat ceded his stake in Britam at the end of April and quit the firm’s board when a huge financial scam in which he is alleged to have defrauded Mauritian investors of billions of shillings was unearthed.
  • Meanwhile, Britam shareholders at the annual general meeting held last Friday approved the firm’s plan to adopt a new name, Britam Holdings Ltd subject to relevant legal processes.

The management of Britam is yet to get a word from the government of Mauritius on whether it intends to sell or hold the stake of a former top shareholder involved in a financial scam.

This followed the exit of Mr Dawood Rawat, who held the largest single stake in Britam, after being implicated in a Ponzi scheme in Mauritius.

Britam Group Managing Director Benson Wairegi said the firm was yet to get any indication on whether and how soon the Mauritius government would sell the stake it took over from Mr Rawat.

“We have no information on when the sale is likely to happen,” he said, adding that it was up to them to decide whether they could sell or keep it. 

“They (Mauritian government) decided to take over that stake and they will deal with it the way any other shareholder does with their stake. They will have to comply with Kenyan laws and regulations,” he said. 

FINANCIAL SCAM

Mr Rawat ceded his stake in Britam at the end of April and quit the firm’s board when a huge financial scam in which he is alleged to have defrauded Mauritian investors of billions of shillings was unearthed.

The Government of Mauritius said it would take over the 23.34 per cent stake held in Britam by the beleaguered businessman. This would give Mauritius government control over almost a quarter of the financial services firm. 

Mr Rawat’s stake, valued at about Sh14 billion, would be held through the State Insurance Company of Mauritius (SICOM).

It was expected that the government would move with speed to sell it off and repay the people who lost money in a Ponzi scheme allegedly involving Mr Rawat.

He was accused of collecting premiums of over 14,500 customers with the promise of high returns, a scheme that turned out to be unsustainable reportedly leading to the loss of over Sh60 billion of investors’ funds.

A Mauritian bank, Bramer Banking Corporation (BBCL), which is associated with Mr Rawat, lost its licence after it was discovered to have been operating the Ponzi scheme.

The Mauritian government appointed a conservator to manage Mr Rawat’s insurance firms held under BAI Co (Mtius).

Meanwhile, Britam shareholders at the annual general meeting held last Friday approved the firm’s plan to adopt a new name, Britam Holdings Ltd subject to relevant legal processes.

NAME CHANGE

“The change of name is occasioned by the need for brand consistency across the region in line with the company’s mantra of ‘One Company One Brand ‘and also the need for the business to align itself to the changing social cultural and business environment,” Mr Wairegi said.

Last year, Britam acquired Real Insurance Company, enabling it to grow its footprint in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Malawi and Mozambique.

The firm also increased its shareholding in Housing Finance to 46.04 per cent from 21.46 per cent following the exit of Equity Bank in the mortgage lender.

Construction of the firm’s 31-storey Britam Tower in Nairobi is expected to be completed in the third quarter of next year.