Kenyan privately-held firm Plum LLP says it intends to buy a 23.34 percent stake in insurance company British-American Investments Co (Britam) which was previously owned by Mauritian businessman Dawood Rawat.
“The partners of Plum LLP … determined to purchase the acquisition shares so as to provide Britam and its shareholders the time they require to identify a strategic investor with the institutional fit to drive Britam’s growth in the future,” Reuters quoted Plum to have said.
The stake Plum is taking up was seized by the government of Mauritius in April 2015 after it accused Rawat of running a Ponzi-like scheme through a Mauritian insurer.
However, Rawat who has been in France since last year, has filed a case against the government of Mauritius. He wants to be compensated to the tune of $1 billion, claiming illegal appropriation of Britam by the state.
Britam which also has operations in Tanzania, Uganda, Rwanda, South Sudan, Malawi and Mozambique, sunk into a Sh1 billion ($9.9 million) loss in the year ended December. The company attributed the loss to increased expenses and paper losses on its equities, as well as fixed-income investments, which all surpassed growth in premiums and investment income.