Centum divests 25pc stake in micro-financier Platinum Credit
Investment firm Centum has divested from non-deposit taking micro-financier Platinum Credit after five years by selling its 25 per cent for an undisclosed amount.
Centum, which is listed at the Nairobi Securities Exchange (NSE) , has sold its stake to management and a current shareholder of Platcorp Holdings, Platinum Credit’s parent company.
James Mworia, Centum’s managing director, says the company has booked a 31 per cent return on investment from the divestiture, a gain which is set to significantly boost its 2018 earnings.
“The proceeds of the sale will enable us to deploy capital in other investment opportunities in our pipeline across our various focus areas,” Mr Mworia said in a statement.
“The sale of our stake will lead to increased management ownership of the business, which is an affirmation of their continued confidence in the business.”
Platinum Credit is a 15-year-old company which offers emergency loans to over 80,000 customers in Kenya, Uganda and Tanzania.
Centum invested in the micro-financier in December 2012 by purchasing a 45 per cent stake through a consortium in partnership with Cassia Capital Partners for an undisclosed amount.
Centum’s effective stake of 36 per cent was later diluted to 33 per cent following the entry of another investor. Last year, the investment firm sold eight per cent of its stake, booking a gain of Sh432 million in the process. This left the business with a 25 per cent stake which it has now sold. Source: Business Daily Africa