Stanlib Kenya Limited (SKL) is in the process of selling its interest in Stanlib Fahari I-REIT, Kenya’s first listed real estate investment trust, to its rival ICEA Lion Asset Management Limited (ILAM).
In a statement, Stanlib Kenya Ltd said it entered into a business agreement deal with ILAM on 6th November 2019 to dispose of Stanlib Fahari I-Reit, which is listed on the Nairobi Securities Exchange.
It’s a done deal
The deal gives ICEA a shortcut into REIT management business, which it had earlier planned to start from scratch.
“Stanlib Kenya Limited has informed the Co-operative Bank of Kenya Limited (as Trustee of the REIT) that SKL has entered into a sale of business agreement with ICEA LION Asset Management Limited dated 6 November 2019, in terms of which SKL shall sell to ILAM certain assets of SKL, which form a substantial part of the assets of its business of managing funds, assets and investments of third parties in Kenya,” Stanlib said in a statement on Friday.
The deal is estimated to be worth more than Ksh1.5 billion and is expected to be concluded by 29th February 2020 subject to approvals from Capital Markets Authority (CMA) and Competition Authority of Kenya (CAK).
Stanlib is one of the largest fund managers in Kenya and runs an asset pool of more than Ksh100 billion. According to the agreement, ICEA LION Asset Management Ltd will not assume any of the debts or liabilities of SKL.
The assets being acquired by ILAM include SKL’s investment management mandates in the REIT and all rights, obligations and benefits relating to SKL’s role as Promoter and REIT Manager.
See Also >> Quicky Investments With Assured Returns in Kenya
The implementation of the agreement is subject to the fulfillment of a number of conditions which include, among others, the approval of the Competition Authority of Kenya, the Capital Markets Authority of Kenya and the Trustee.
Meanwhile, unit-holders and the public are advised to exercise due caution when dealing in the securities of the REIT until further announcements are made. The announcement pushed the REIT’s share price to highs of Ksh9 on Friday as investors speculated on the takeover by the Philip Ndegwa family through ICEA.
Next Read >> Major Fallout at Citizen TV Forced Out Hussein Mohammed
