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Jubilee Group deputy CEO Juan Cazcarra, board chairman Zul Abdul and CEO Julius Kipngetich /HANDOUT
The twin announcement of a merger and partial acquisition involving the Nairobi Securities Exchange (NSE) FIRM: Jubilee and East Africa Portland Cement, excited investors at the Nairobi bourse last week, pushing up their share prices.
Weekly data from the NSE shows that the two companies were among the top gainers in the week ended August 1, with Jubilee at the top, having gained a massive 9.4 per cent to start the month at Sh267.
The insurer’s share has been bullish since June, when investors pocketed Sh978 million in dividends for the 2024 financial year, following a robust performance that saw the firm post a profit before tax of Sh6.2 billion.
Shareholders approved a final dividend of Sh11.50 per share during the company’s 87th annual general meeting in Nairobi. Combined with the interim dividend of Sh2 already paid out, the total dividend stood at Sh13.50 per share, the highest in Jubilee’s history.
On Friday, Sanlam Kenya and Jubilee Holdings announced plans to consolidate their general insurance operations by merging their respective subsidiaries.
The move comes after Jubilee Allianz General Insurance Kenya received a Sh2.75 billion capital boost from its top owners, Sanlam Allianz and Jubilee Holdings
According to the two insurers, the proposed amalgamation aims to integrate all classes of general insurance business held by Sanlam General into Jubilee Allianz General’s existing portfolio.
In the deal, Sanlam General is set to transfer Sh2.78 billion in assets—56 per cent of which are held in government securities—and Sh2.76 billion in liabilities to Jubilee Allianz, under a deal first approved by Sanlam’s board in October 2024.
East African Portland Cement’s share price, on the other hand, rose by 6.8 per cent on Friday to close the week at Sh50.75. The cement maker’s share had slightly lost steam after commanding the bourse for several months with a year-on-year growth of over 200 per cent.
The recovery was ignited by an announcement by Kalahari Cement Limited to inject Sh718.67 million to acquire a 29.2 per cent stake in EAPC, making it among the top shareholders.
It plans to mop up a combined total of 26.3 million shares from two key shareholders, Associated International Cement Limited (AIC) and Cementia Holding AG.
Kalahari has applied to the CMA for an exemption from the obligation to make a general offer to all EAPC shareholders, citing its role as a long-term strategic investor that will bring management and technical support to the company.
It has also clarified that it does not plan to delist EAPC from the NSE.
Kalahari has applied to the CMA for an exemption from the obligation to make a general offer to all EAPC shareholders, citing its role as a long-term strategic investor that will bring management and technical support to the company.
Kalahari has also clarified that it does not plan to delist EAPC from the NSE.
Generally, the bourse recorded mixed activities after, with the NSE 25 and NSE 20 share price indices increasing marginally by a percentage and 1.46 per cent, respectively. Even so, the NASI decreased by 0.01 per cent.
Market capitalisation and equity turnover decreased by 0.01 per cent, 13.95 per cent, respectively, while total shares traded increased by 17.52 per cent.
Meanwhile, investors have started to desert government securities after the low yields dropped further during the week.
The data from the weekly bulletin by the Central Bank of Kenya (CBK) shows that bills worth Sh16.1 billion were received against an advertised amount of Sh24 billion, representing a performance of 67.1 per cent.
However, bond turnover in the domestic secondary market increased by 29.4 per cent.
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