© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Centum Acquisition of a Controlling Stake in K-Rep Bank
Posted 1st February 2015

Centum Acquisition of a Controlling Stake in K-Rep Bank

Centum, the East African investment firm, announced the acquisition of a controlling stake in Kenyan bank K-REP Bank Limited.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Centum Acquisition of a Controlling Stake in K-Rep Bank
Image

Centum Acquisition of a Controlling Stake in K-Rep Bank

In November 2014, Centum, the East African investment firm, announced the acquisition of a controlling stake in Kenyan bank K-REP Bank Limited from several existing shareholders. Fred Murimi, Corporate Affairs Director, Centum Investment Company Limited, told us more about the deal – and how it will help Centum achieve its goal of becoming Africa’s foremost investment channel

Centum is a listed investment firm established in 1969 and is listed on the Nairobi and Uganda securities exchanges. It has over US$470m in investment in financial services, FMCG, power and real estate.

With a vision is to be Africa’s foremost investment channel, Centum’s key objective is to consistently generate market beating returns by building extraordinary enterprises throughout Africa.

In November 2014, Centum announced the acquisition of a 66% stake in K-REP Bank Limited from several existing shareholders, including African Development Bank, IFC, Triodos Doen, FMO and Shorecap International to bring its total shareholding in K-REP to 67.54%.

“Centum exercised its preemptive right, together with other non-selling shareholders, to obtain a controlling stake in the bank,” says Fred Murimi, Corporate Affairs Director, Centum Investment Company Limited.

K-REP was licensed as a commercial bank in 1999 and has registered steady growth over the years. The bank is a medium-sized microfinance bank serving the urban and rural poor in Kenya, as well as financing their small-to-medium business enterprises. As at 30 June 2014, K-REP’s total assets were valued at KES13,683m (US$149.7m).

Centum says the deal is in line with its objective of expanding its presence in the financial services sector. “Centum intends to drive increased investment focus in eight key sectors, one of which is financial services, as it seeks to become Africa’s foremost investment channel,” says Murimi.

A well-thought-out plan of action is vital to successfully completing a deal – and ensuring it continues to be successful in the long term, says Murimi. “The important elements are alignment among all stakeholders and a clear vision and strategy for the investment by the new investor.”

Like any deal, there were, of course, challenges, says Murimi. “The major challenge was negotiating with five different investors on a share purchase agreement. This was overcome through ensuring a joint negotiation all through resulting in buy in from the different sellers at any one time.

“Time was also a constraint since the transaction required a number of regulatory approvals and the long stop date from signing the SPA was short. This was overcome by continuous engagement with the regulators, who also worked efficiently in the period.”

The current business environment in Kenya is very encouraging, says Murimi – and this was important in helping bring the deal to a successful conclusion. “It’s positive and optimistic looking into the future, with improved government investment in infrastructure and a concerted effort by the government to support businesses.

“The climate was conducive to completing the deal,” he says.

It’s a deal which will be beneficial to both parties, says Murimi. “The deal will allow K-REP to access a wider capital base and increase its presence in the sector, while allowing Centum to increase its financial services portfolio.”

Looking to the future, Murimi says Centum intends to grow K-REP into a full-service Tier II bank in Kenya within five years.

Categories: M&A, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Top Custom eLearning Solutions To Improve Corporate Training
Corporate Social Responsibility
26/01/2023Top Custom eLearning Solutions To Improve Corporate Training

Customised eLearning programs are created to satisfy the professional training requirements of your staff and your company.

Read Full PostRead - Eye Icon
Making International Business Easy
Legal
19/07/2023Making International Business Easy

Being able to trade effectively on the world stage offers the opportunity to build better economies, access more opportunities and create better lives. Trade compliance expert, BlueBlox GmbH, believes that international trade should be easy and accessible for

Read Full PostRead - Eye Icon
Unlocking Potential
Finance
04/01/2017Unlocking Potential

The Islamic Corporation for the Development of the Private Sector (ICD) is the private sector arm of the Islamic Development Bank (IDB), the world’s largest Sharia’a compliant multilateral institution. A spokesperson from the firm reveals more about the fi

Read Full PostRead - Eye Icon
5 Essentials Of An Effective Equipment Budget
Finance
27/03/20235 Essentials Of An Effective Equipment Budget

Are you a business owner planning to invest in equipment for efficient service and product delivery to your clients? What plans do you have in place to actualize the dream?

Read Full PostRead - Eye Icon
Data Protection by Design and Default
Innovation
29/07/2024Data Protection by Design and Default

The very thought of keeping up-to-date with new regulations, cyber threats and improving data protection can send shivers down the spines of companies across all sectors. Such is the threat and the sheer number of ways that personal data can be compromised, th

Read Full PostRead - Eye Icon
Top places to find skilled specialists for your startup: React developers for hire
News
18/04/2023Top places to find skilled specialists for your startup: React developers for hire

You’ve just decided to hire React developer talent for your cutting-edge project. You’re brimming with excitement, but there’s a problem: where do you find these elusive experts to make your vision a reality? Fret not, fearless leader, for we

Read Full PostRead - Eye Icon
Generational Equity Announces the Acquisition of The HR Group Inc. by JER HR Consulting LLC
M&A
22/03/2016Generational Equity Announces the Acquisition of The HR Group Inc. by JER HR Consulting LLC

Generational Equity, a leading mergers and acquisitions advisor for privately-held, middle-market businesses, is pleased to announce the acquisition of its client, The HR Group Inc. headquartered in Greensboro, North Carolina.

Read Full PostRead - Eye Icon
An Arbitrator in Demand
Finance
31/08/2016An Arbitrator in Demand

Piotr Nowaczyk is an independent international arbitrator and mediator based in the Masovian District of Warsaw, Poland.

Read Full PostRead - Eye Icon
Using Technology to Streamline Benefits Administration and Employee Engagement
Innovation
09/09/2024Using Technology to Streamline Benefits Administration and Employee Engagement

Employees often choose where they’ll work based on the benefits provided as part of an overall salary package.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow