Centum Investment Company PLC has taken bold steps to reshape its future, as shareholders approved several transformative decisions at a recent general meeting. These resolutions promise to enhance the company’s financial position and expand its investment portfolio, reinforcing its role as a key player in Kenya’s investment landscape.
Key Approvals Include:
Incorporation of Two Rivers Land Company (SEZ) Limited
Shareholders ratified the creation of Two Rivers Land Company (SEZ) Limited as a Centum subsidiary, marking a new chapter in the company’s real estate ventures. This move is expected to strengthen Centum’s presence in the lucrative special economic zones (SEZs), creating significant growth opportunities in the real estate sector.
Acquisition of 37.5% Stake in Akiira Geothermal Limited
In a significant move toward expanding its energy portfolio, Centum has acquired an additional 37.5% stake in Akiira Geothermal Limited. This acquisition makes Akiira a Centum subsidiary and positions the company to play a more active role in Kenya’s renewable energy industry, particularly in geothermal energy generation.
Partial Sale of Sidian Bank Limited Stake
In another strategic move, Centum shareholders approved the sale of a portion of the company’s shareholding in Sidian Bank Limited, retaining a 20% stake. With this sale, Sidian Bank will cease to be a Centum subsidiary, allowing the company to streamline its banking interests while maintaining a stake for future growth opportunities.
Share Buyback Plan
A major highlight of the meeting was the approval of a share buyback plan. Centum will be authorized to buy back up to 65,559,241 shares, representing 10% of the issued and paid-up share capital. Shareholders gave the green light for buybacks at prices ranging between KES 0.50 and KES 9.51 per share over a period of 18 months. This buyback plan is set to boost shareholder value and optimize the company’s capital structure.
Re-allotment of Shares Under the Buyback
To complement the buyback initiative, Centum’s directors were authorized to re-allot shares purchased during the buyback. This authority will remain valid for up to five years, providing flexibility for future capital management unless renewed by shareholders.
These strategic decisions underscore Centum’s focus on building a stronger, more diversified portfolio. With expansion into energy and real estate, a restructuring of its banking investments, and efforts to return value to shareholders, Centum is positioning itself for sustained growth.
Shareholders are also set to benefit from a dividend of KES 0.32 per share, payable on or about December 13th, 2024. This follows a strong performance in the financial year ending March 31st, 2024.
As the company continues to make moves across various sectors, the Centum brand remains a beacon of innovation and financial leadership in Kenya’s corporate landscape.
