Why Centum is selling Coca-Cola shares
Centum Investment Company (ICDC) plans to sell its shares in two Coca-Cola bottling businesses in Kenya to raise funds for debt repayment and investments. The investment firm will sell its 27.6% stake in Nairobi Bottlers Limited and 53.9% Almasi Beverages Limited. Centum expects to make Ksh19.5 billion from the stake sales. It is selling the stakes in the Coca-Cola businesses back to Coca Cola Beverages Africa, which will now own 100% of the Nairobi Bottlers once the transaction closes. The transactions are expected to close before the end of this year.
Centum planning Ksh15 billion investment
On the debt repayment, Centum plans to spend Ksh7.5 billion to repay a bank loan. It says the debt repayment will help it make a Ksh700 million saving on financing costs. The firm plans to spend as much as Ksh15 billion on investments over the next five years.
Centum posted Ksh4.1 billion profit for fiscal 2019
Centum invests in public and private companies and has interests in broad range of sectors including real-estate, banking, energy, and publishing. Centum made a profit of Ksh4.1 billion in its financial year ended March 2019, representing an increase of 48% from the previous year.
Centum shares rose 0.15% on Friday to close at Ksh32.45.
CATEGORIES Briefings