Article: Business Daily
An asset management firm owned by the Philip Ndegwa family has made an offer to buy out retail investors in property fund ILAM Fahari I-Reit at Sh402.4 million or Sh11 per unit, representing a major premium to the trading price on the Nairobi Securities Exchange.
ICEA Lion Asset Management Limited, which manages Fahari, has offered to buy a total of 36.58 million units (shares) as part of a plan to delist the property fund.
The offer price represents an 83.3 percent premium to Fahari’s closing price of Sh6 on Monday. It, however, represents a 41.3 percent discount to the fund’s net asset value per unit of Sh18.75 as of June.
The partial buyout is designed to restrict the fund’s owners to high-net-worth individuals and institutions who can support it to scale up its operations, the Reit manager said.
“The Reit Regulations state that a restricted I-Reit can only have professional investors who meet a minimum threshold of Sh5 million and so the ICEA LION Asset Management Limited … as promoter will be funding the redemption of units from unitholders below that threshold,” reads part of communication sent to the press.
People Daily: https://www.pd.co.ke/business/cma-approves-fahari-i-reits-restructuring-198403
Business Daily Africa: https://www.businessdailyafrica.com/bd/markets/capital-markets/philip-ndegwa-firm-to-buy-sh402m-stake-in-property-fund--4350642
Capital FM: https://www.capitalfm.co.ke/business/2023/08/cma-approves-ilam-fahari-i-reit-operational-restructuring-offer/?utm_source=dlvr.it&utm_medium=twitter