Centum investment divests it’s five year stake in Kenya’s Platcorp holdings

Centum Investment Company Plc has exited its five-year investment in Platcorp Holdings Ltd with the sale of its 25 percent stake in the Kenyan company.

The publicly owned investment company, announced on Monday that it has sold its share to Suzerain Investment Holdings Limited, a consortium of Platcorp’s management team and a current shareholder.

With this sale, the Nairobi Securities Exchange (NSE) listed company (Centrum) which trades under the symbol ICDC booked a gain of over Sh1 billion (about $10million).

Centrum’s group C.E.O, James Mworia said “the sale of our stake will lead to increased management ownership of the business, which is an affirmation of our continued confidence in the business”.

The stake sale is a close of an offload process that commenced last year when Centum sold eight per cent of its then 33 per cent stake. “Centum Invested in the business in December 2012 and it has delivered a steller 31 per cent holding period internal rate return” Mworia said as he noted that “the proceeds from the sale will enable us to deploy capital in other investment opportunities in our pipeline across our various sectors.”

Centum, whose investments are spread over various sector including banking, energy, education, agriculture and real estate, has over the past five years exited several firms where it is not a significant shareholder.

In 2015, the investment firm sold its stake in UAP Holdings to Old Mutual, and made a gain of Sh2.8 billion. The following year, Centum booked a Sh1 billion gain from the sale of its 21.5 per cent stake in insurance brokerage AON (now Minet Kenya).

Platcorp Holdings Limited-a Kenyan based holding company that operates through its subsidiaries, Platinum Credit and Premier Credit to provide emergency loan services to individuals in the Eastern region- sold 45 percent of its stake to centimetres in 2013.

Platcorp Holdings subsidiary, Platinum credit is a non-banking, non-deposit taking micro finance institution which provides emergency loans to customers and has operations in Kenya, Uganda and Tanzania. While Premier credit is a credit only micro finance institution that offers loans to individual small and medium-sized businesses to cater for unforeseen immediate working capital needs.