Sanlam Kenya all set to raise Sh2.5 billion to recapitalise its balance sheet
The purpose of the Rights Issue is to bring the Group's indebtedness to a more sustainable level
Listed non-banking financial services company Sanlam Kenya Plc has announced that the Company’s Rights Issue, seeking to raise up to Ksh 2.5 billion, will open in a fortnight following regulatory approvals.
The company has secured all the regulatory and related approvals from the Capital Markets Authority of Kenya
(CMA), the Nairobi Securities Exchange (NSE), the Insurance Regulatory Authority (IRA) and the South
African Reserve Bank (SARB) ahead of the commencement of the Rights Issue, which is now set to open on
April 25 and close on May 12.
The Rights Issue follows shareholder approval late last year during an Extraordinary General Meeting (EGM)
called to consider recapitalising the Company’s balance sheet to drive its profitability.
Speaking at the announcement of the Rights Issue timetable, Sanlam Kenya Chairman Dr John Simba said
the Ksh 2.5 billion Rights Issue will enable the Company to recapitalise its balance sheet by settling a loan
facility from Stanbic Bank Kenya Plc. He confirmed that all current Sanlam Kenya registered shareholders
holding the firm’s issued ordinary shares will be eligible to participate.
The transaction will be spearheaded by the Lead Transaction Advisor (Absa Bank (Kenya) Plc), Lead Sponsoring Broker (Absa Securities Limited), Legal Advisor (Anjarwalla & Khanna LLP (ALN Kenya), Reporting Accountant (KPMG Kenya), Receiving Bank (Stanbic Bank Kenya Plc), Share Registrar (Image Registrars Limited) and Marketing Consultants (Oxygène MCL).
“The purpose of the Rights Issue is to bring the Group’s indebtedness to a more sustainable level and will
specifically enable the Company to reduce its long-term debt levels, which will save on financing costs currently
being charged by the Company’s lenders,” Dr Simba said. He added, “While part of the funds will be used to
retire the Stanbic debt, a part of the proceeds will also be used to provide management with the operational
and financial flexibility to drive the Group’s growth ambitions and sustain its profitability.”
On his part, Sanlam Kenya CEO Dr Patrick Nyamemba Tumbo said the Rights Issue is fully underwritten by Sanlam Kenya’s parent company, Sanlam Allianz Africa Proprietary Limited, a company incorporated in
South Africa, which has undertaken to pick up any untaken rights that remain after allocation to all eligible shareholders.
