HF Group opens door to investors for stake acquisition

HF Group opens door to investors for stake acquisition

The HF Group is now calling on board investors to acquire a stake at the mortgage lender.

It is looking to strengthen its capital in line with its current strategy.

According to the Group’s Chief Executive Officer Robert Kibaara, no transaction has been made after an announcement was published in the company’s 2020 financial statement.

Details of the transaction will be announced to shareholders in compliance with the listing rules and Capital Market Authority regulations applicable to it, once the transaction has been made.

The price at which the insurer will sell its stake in the impending transaction is expected to be based on negotiations with interested investors.

On November 8, Equity Group said it was open to repurchase a stake in mortgage HF Group, signalling a shift in its appetite to acquire rivals in the Kenyan market.

The Group’s CEO James Mwangi said the bank would review its interest in HF, seven years after selling its 24.7 percent stake to insurance group Britam.

Britam plans to sell part of its 48.2 percent stake in HF Group to one of the country’s big banks as part of its investment portfolio review.

“We exited from HF Group …but if it becomes available, we would evaluate it just like we evaluate other opportunities,” Mr Mwangi told the Business Daily in an interview.

Britam in March said it would sell majority stake in HF Group to focus on insurance business.

HF is ranked third in the residential mortgage business with 11.2 percent market share, having lent Ksh.26.09 billion to 4,101 house buyers as of December 2020, according to Central Bank of Kenya (CBK) data.

Stanbic Bank Kenya comes in second with a 13.1 percent market share having lent Ksh.30.54 billion in the same period.

KCB is the leader with Ksh.69.06 billion loans to 8,837 customers.

Equity Group holds five percent market share having lent Ksh.11.52 billion to 1,898 customers.

HF’s market capitalisation stands at Ksh.1.46 billion and valuing Britam’s stake at Ksh.703 million.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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