CFC Insurance of Kenya Plans to List on Nairobi Stock Exchange by October
CFC Insurance Holdings Ltd., a unit of CFC Stanbic Holdings Ltd., plans to begin trading its shares on the Kenyan stock exchange by October, Managing Director Mike du Toit said.
The company, based in Nairobi, plans to seek regulatory approval next week for the listing on the Nairobi Stock Exchange, Du Toit told reporters today in the capital city. CFC Stanbic, Kenya’s sixth-biggest lender by market value, first announced plans to list the insurance unit in April.
The listing “is not being done to raise funds,” Du Toit said. “It is being done to separate the banking business from the insurance business.” For every stock held in CFC Stanbic Holdings Ltd., shareholders will receive one bonus share in CFC Insurance, he said.
Kenya’s CFC Life Insurance and Heritage Insurance are wholly owned units of CFC Insurance Holdings, said Du Toit, who also oversees the operations of Uganda’s Liberty Life Assurance and Tanzania’s Heritage Insurance, Alliance and Strategis.
On June 1, CFC placed its Kenyan life-insurance businesses under CFC Life Assurance and housed its general insurance operations in the East African country in Heritage Insurance Co. following a reorganization of the two companies.
The process of transferring all general insurance business to Heritage is expected to be completed by September, while moving all life insurance policies to CFC will be concluded by the end of this year, John Milne, managing director of Heritage, told reporters in Nairobi today.
CFC Insurance Holdings is 53.11 percent owned by CFC Stanbic Holdings, 24.95 percent by Liberty Holdings Ltd. of South Africa and 21.94 percent by African Liaison and Consultants Ltd, CFC Stanbic Holding Managing Director Kitili Mbathi told reporters last month.
Upon listing, Liberty Holdings will own about 56 percent of CFC Insurance, with the balance of 44 percent held by African Liaison and Consultants Ltd. and the investing public, du Toit said.