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AfricaMoney | August 22, 2017

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Centum targets diversified portfolio via Mauritius units

Centum targets diversified portfolio via Mauritius units, Kenya acquisition

James Mworia, CEO, Centum Investment Group, Kenya (Source: Forbes)

Centum Investment Company, East Africa’s largest publicly traded investment group, announced on September 13 that it had incorporated new units including Mvuke Power Ltd. in Mauritius to invest in energy projects. Further, the group, which has over $140m assets under management (AUM), will seek shareholder approval on October 18 for the acquisition of a 79.2 percent stake in Kilele Holdings, incorporated in Mauritius.

The new units incorporated in Mauritius form part of its aggressive drive to offer a well-balanced portfolio to its customers through access to diverse sectors such as energy, real-estate and beverage industries.

It may be noted that the group has recently acquired a 73.35 per cent controlling stake in asset manager, Genesis Kenya Investment Management Ltd, for an undisclosed amount. Centum is leveraging the acquisition to boost management of third party funds and to offer a more diversified portfolio to its customers. Genesis was established in 1996 with the aim of providing high quality investment management services to institutional investors and is licensed to operate in Kenya and Uganda.

The strategic move to incorporate new units in Mauritius and take stake in the Kenyan fund management firm is part of the company’s ongoing efforts to provide investors with access to a portfolio of otherwise inaccessible and diversified investments. Private equity, real estate and infrastructure and quoted investment business lines are expected to supplement its existing portfolio and allow investors a wider selection of sectors to commit their funds.

However, while the incorporation of Mauritius units has proceeded smoothly, the Kenyan acquisition is still subject to statutory and regulatory approvals from the Competition Authority of Kenya, Capital Markets Authority (CMA) and Retirement Benefits Authority (RBA) and fulfillment of other customary closing conditions.

Centum’s moves to grow by the inorganic route have come on the heels of the launch of its asset management division. In June, Centum Asset Managers Ltd, with Sh6 billion (Rs 2.1 billion) worth of AUM, was unveiled as part of the firm’s business restructuring process. Centum Asset Managers is headed by Pius Muchiri, who was previously investment manager in charge of quoted equities at the company.

And, Centum seems to be on track financially as it had more than doubled its pre-tax profit for the year ended March 31 buoyed by improved earnings from its investments across borders. Further, the group’s profit before tax (PBT) jumped 146 per cent to Sh3.2 billion (Rs 1.12 billion) from the previous year’s Sh1.3 billion (Rs 460 million).

Source: Company website, Bloomberg

Company Profiles

Centum Investment Group

Centum is a leading East African investment company with over $140m assets under management (AUM). It is listed on the Nairobi Securities Exchange and cross-listed on the Uganda Securities Exchange.

An investment channel providing investors with access to a portfolio of inaccessible, quality and diversified investments, the group’s key objective is to consistently generate return on capital above market returns through three distinct business lines: Private Equity, Quoted Private Equity and Real Estate & Infrastructure.

In the financial year ended 31 March, 2013, the group more than doubled its profit before tax from the previous financial year, posting S3.2 billion ($38 Mn). In 2012, the firm reported profit before tax of S1.3 billion ($16 Mn). Finally, its income tripled to S3.9 billion from the previous year’s S1.3 billion, buoyed by an increase in activity and diversification of investments in both private and publicly listed firms in Rwanda, Ghana, Tanzania and Nigeria.

Source: Company website

Genesis Kenya Investment Management Ltd

Genesis was established in 1996 with the aim of providing high quality investment management services to institutional investors.

It specializes in investment management and pension scheme advisory services with over 17 years’ experience in Kenya and a track record of delivering superior returns to its clients. Under pension fund management, it offers flexible, market-linked investments which provide a segregated portfolio ideally suited to pension fund schemes.

Currently, Genesis manages funds worth over S100 billion (Rs 35.09 billion) belonging to clients within and outside Kenya. Genesis is licensed in Kenya as a fund manager by the Capital Markets Authority and the Retirement Benefits Authority. In Uganda, it is licensed by the Capital Markets Authority – Uganda as a Fund Manager and Investment Advisor.

Source: Company website

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