Centum Investment Company Plc,commonly known asCentumis a publicEast Africaninvestment company.It operates as an affiliate of theKenyangovernment-ownedIndustrial and Commercial Development Corporation(ICDC).
| Company type | Public Limited Company |
|---|---|
| KN:CTUM USE:CENT | |
| Industry | Investments |
| Founded | 1967 |
| Headquarters | Nairobi,Kenya |
Key people |
|
| Products | Private Equity, Real Estate Development, Agribusiness, Publishing, Banking, Power Generation, Beverage Distribution etc |
| Revenue |  Aftertax:US$10.6 million (KES:4.120 billion) (FY:2018/2019)[3] |
| Total assets | US$1.002 billion (KES:101.764 billion) (March 2019)[3] |
Number of employees | 176 (2018)[4] |
| Website | www |
Overview
editCentum is a publicly owned investment company with headquarters inNairobi,Kenya. Its shares are listed on theNairobi Securities Exchange(NSE), where they trade under the symbol:CTUM.[5][6]The company shares are also cross-listed on theUganda Securities Exchange(USE), where they trade under the symbol "CENT".[7]Centum is an investment channel providing investors access to a portfolio of inaccessible, quality, diversified investments.
Centum's mission is to create real, tangible wealth by providing the channel through which investors access and build extraordinary enterprises in Africa. As of March 2019 Centum's total assets were KSh 101,764,000,000 (US$1,002,490,000) with shareholder's equity of KSh51,576,000,000 (US$508,083,000).[3]
History
editICDC was founded in 1954 as a governmentparastatal,whose primary objective was to provide a vehicle for Kenyans to invest in the economy of newly independent Kenya by investing in Kenyan companies. In 1967, ICDC formed the subsidiary ICDC Investment Company Limited, whose shares were listed on the NSE.
In 1998, with theGovernment of Kenyahaving sold some of its majority shareholding, ICDC Investment Company adopted a new management structure, handing over day-to-day management to an independent professional managerial team, supervised by an independent board of directors elected by the shareholders.
In 2008, the shareholders changed the name of the company to Centum Investment Company Limited.[8]The shares of Centum Investment Company Limited have been publicly traded on the NSE since 1967 and on the USE since 10 February 2011.[9]Over time, Centum's strategy has evolved in line with the company's growth with Centum currently in its 2014 – 2019 strategic period dubbed "Centum 3.0".[10]Under Centum 3.0, the company maintains focus through 4 distinct business lines namely Real Estate, Private Equity, Development and Marketable Securities.[11]
Investment Overview
editCentum's investments are organised into four key verticals:
Real EstatePortfolio
editThis division is involved in real estate development in Kenya[12]and Uganda,[13]with an eye to expanding into other countries in the African Great Lakes region.[14]These include:[15]
- Athena Properties Limited– 100 shareholding – A real estate management, ownership, and development company.
- Two Rivers Development Limited– 58.3 percent shareholding – 102-acre development in Kenya's diplomatic blue zone.[16]
- Vipingo Development– 100 percent shareholding – 10,254-acre[17]development off the Kenyan coast.[18]
- Pearl Marina– 100 percent shareholding – 389-acre development located in Ntabo Peninsula, popularly known as Garuga, by the shores of Lake Victoria in Uganda.
Private EquityPortfolio
editThis division acquires equity positions in either publicly or non-publicly traded companies, mainly in theAfrican Great Lakesregion, but increasingly in other parts of the continent as well.[19]Investments under this segment include the beverage, publishing, financial services and utilities businesses. Per its March 2018 annual report, these included:[20]
- Nabo Capital– 100 percent shareholding – Afund managerin Kenya.
- Zohari Leasing– 100 percent shareholding – Aleasingcompany in Kenya.
Others
edit- Isuzu East Africa– 17.8 percent shareholding – A motor vehicle retailer in Kenya and the local subsidiary of American-basedGeneral Motors.
- NAS Servair– 15 percent shareholding – An on-site airport catering facility supplying over 30 International airlines that fly into and out of theJomo Kenyatta International AirportinNairobiandMoi International AirportinMombasa.
- Longhorn Publishers– 60.2 percent shareholding – Apublishing companylisted on theNairobi Securities Exchangewith subsidiaries in Kenya,Uganda,andTanzaniaand distribution inMalawiandRwanda.[21][22]
Marketable SecuritiesPortfolio
editThe Marketable Securities Portfolio comprises investments in securities and fixed income instruments managed byNabo Capital.The portfolio is broadly diversified across various stock exchanges in Africa and primarily invests in large and mid-capitalization equities while maintaining sizeable allocations to fixed income and cash.[23]This segment represents 8.2% of Centum's portfolio value.[24]
Development Portfolio
editThis represents investments, outside from real estate, that are still under development. As of March 2018[update]the development portfolio consists of;
- Greenblade Growers Limited– 100 percent shareholding – A vertically integrated grower, processor and exporter of fresh herbs, vegetables and fruits from Kenya.
- Africa Crest Education Holdings– 16.4 percent shareholding – An investment holding company whose objective is establishingSABIS® operated K-12 schools across the African continent.
- Akiira Geothermal Limited– 37.5 percent shareholding – The first private sector greenfield geothermal development in Sub-Saharan Africa.
- Amu Power Company– 51 percent shareholding – A power generation company.
Former investments
edit- In 2014, Centum exited two investment fundsHeliosand Nigeria-based African Capital Alliance where total investments were valued at KShs 500 million.[25]
- Rift Valley Railways– 10 percent shareholding previously held – Aconsortiumthat was established in 2005 to manage theUganda Railwayparastatalrailways of Kenya and Uganda. This investment was exited in 2012[26]to Qalaa Holdings.[27]
- UAP Holdings– 14 percent shareholding previously held – An investment, retirement, and insurance services group that operates mainly inEast Africa.Centum exited this investment in 2015 through a direct sale toOld Mutual.[28]
- Kenya Wine Agencies Limited– 26 percent shareholding previously held – A leading manufacturer, distributor, and importer of wines and spirits in East Africa. This investment exited this investment in 2017 through a direct sale toDistell.[29]
- Carbacid Investments– 22 percent shareholding previously held – A manufacturer and marketer ofcarbon dioxidegas for industrial and medical use as well asdry ice.This investment ended in 2011.[30]
- GenAfrica Asset Managers– 73.4 percent shareholding – The second largest fund manager in Kenya. This investment was exited in 2018.[31]
- Aon Insurance Brokers – 22 percent shareholding – An insurance brokerage and consulting services company and the Kenyan subsidiary ofAon Plc.This investment was exited in 2016.[32]
- Platcorp Holdings – Owner of Platinum Credit. 45 percent shareholding. A short term financing company with subsidiaries in Kenya, Uganda, and Tanzania.[33]This investment was exited in 2018.[34]
- Almasi Beverages Limited – 53.8 percent shareholding[35][36]– The second largestCoca-Colabottling franchise in Kenya.
- Nairobi Bottlers – 27.6 percent shareholding – The largest of the Coca-Cola franchises in Kenya.
- King Beverage Limited – 100 percent shareholding – Sole distributor forDanishbeer manufacturerCarlsbergbrands and selectEdringtonProducts andGraysspirits in Kenya.[37][38][39][40][41]
- Sidian Bank– 77 percent shareholding – Acommercial bankin Kenya, licensed by theCentral Bank of Kenya,the national banking regulator.[42][43][44]The bank was sold toAccess Bank Groupof Nigeria in June 2022, for US$37 million and merged intoAccess Bank Kenya.[45]
Ownership
editAs of 31 March 2022, the companystockwas owned by corporate entities and individuals. The ten largest shareholders are listed in the table below:[3][46]
| Rank | Name of Owner | Percentage Ownership |
|---|---|---|
| 1 | Estate of the lateChristopher John Kirubi | 30.94
|
| 2 | Industrial and Commercial Development Corporation | 22.97
|
| 3 | Kimani, John Kibunga | 4.39
|
| 4 | Standard Chartered Kenya Nominees NON-RED A/C 9827 | 1.47
|
| 5 | Standard Chartered Kenya Nominees Limited A/C KE004326 | 1.34
|
| 6 | Standard Chartered Kenya Nominees Limited A/C KE003534 | 1.2
|
| 7 | Stanbic Nominees Ltd A/C NR 1031141 | 1.09
|
| 8 | Uganda Securities Exchange | 0.86
|
| 9 | James Mwirigi Mworia | 0.85
|
| 10 | CFC Stanbic Nominees Limited A/C NR1031313 | 0.84
|
| 11 | Others | 34.04
|
| Total | 100.00
|
See also
editReferences
edit- ^Mutegi, Mugambi (16 November 2016)."Ex-AfDB Boss Kaberuka to head Centum Board".Business Daily Africa.Nairobi.Retrieved16 November2016.
- ^Mutegi, Mugambi (10 February 2016)."Centum hires former PwC director as new chief finance officer".Business Daily Africa.Nairobi.Retrieved10 February2016.
- ^abcdCentum Investment Company (31 March 2019)."Centum Annual Report and Financial Statements for the Year Ending 31 March 2019"(PDF).Nairobi: Centum Investment Company.Retrieved10 July2019.
- ^Ngugi, Brian (28 August 2018)."Centum CEO takes pay cut to earn Sh177.5 million".Business Daily Africa.Nairobi.Retrieved28 August2018.
- ^Yonga, Romuald."Nairobi Securities Exchange Updates Issuer Codes".african markets.Retrieved27 August2021.
- ^Michira, Moses (6 October 2010)."Kenya: Centum's New Shares Begin Trading".Business Daily Africavia AllAfrica.Nairobi.Retrieved14 April2014.
- ^"Listed Equities on Uganda Securities Exchange".Kampala:Uganda Securities Exchange(USE). 4 August 2017. Archived fromthe originalon 5 August 2017.Retrieved4 August2017.
- ^"Centum: Our History".Centum Investment Company Limited.Retrieved14 April2014.
- ^Ojambo, Fred (29 December 2010)."Ugandan Exchange Approves Secondary Listing by Centum Investment of Kenya".Bloomberg News.Retrieved14 May2014.
- ^"Centum's Strategic Evolvement".
- ^"Business Model".
- ^Thiong'o, Peterson (14 June 2014)."Centum Shares Hit New Highs on Improved Profits, Mega Projects".The EastAfrican.Nairobi.Retrieved14 June2014.
- ^Ojambo, Fred (12 April 2013)."Kenya's Centum to Invest $22 Million in Ugandan Luxury Marina".Bloomberg News.Retrieved14 June2014.
- ^Kamau, Scola (30 November 2010)."Centum Ventures into High Return Markets".The EastAfrican.Nairobi.Retrieved10 February2016.
- ^"Centum Investment Company Limited FY18"(PDF).Centum Investment Company Limited. 31 March 2014. Archived fromthe original(PDF)on 29 November 2014.Retrieved20 November2014.
- ^"Two Rivers eyes smart city status with over 10,000 residences".
- ^"Vipingo Development Website".
- ^"Centum breaks ground for Sh100 billion industrial park".
- ^CENTM."Private Equity".Centum Investment Company Limited (CENTM). Archived fromthe originalon 18 October 2014.Retrieved20 November2014.
- ^"Centum Annual Report FY18"(PDF).
- ^Longhorn Publishers Annual Report & Financial Statements 2018.
- ^"Others Portfolio".
- ^"Marketable Securities".
- ^Centum Annual Report FY18(PDF).
- ^Mutegi, Mugambi (18 June 2015)."Centum's profit jumps to Sh7.9bn on sale of UAP".Business Daily Africa.Nairobi.Retrieved22 September2017.
- ^"Centum Exits From RVR".Nairobi: Centum Investment Company Limited. 21 January 2012. Archived fromthe originalon 9 February 2015.Retrieved2 September2015.
- ^Investors inject $US 250 million into Rift Valley RailwaysInternational Railway JournalMay 2010 page 5
- ^Juma, Victor (27 January 2015)."Old Mutual Raises Stake in UAP After KSh14 Billion Buyout".Business Daily Africa.Nairobi.Retrieved27 January2015.
- ^"Centum books gain from KWAL".
- ^RIKE (11 May 2011)."Centum Confirms Carbacid Share Sale"(PDF).Nairobi: Rich.co.ke (RIKE).Retrieved12 February2015.
- ^"Centum sells stake in asset management firm".
- ^"Centum exits AON".
- ^Mugwe, David (25 February 2013)."Centum Gets Uganda's Approval on Real Estate Project".The EastAfrican.Nairobi.Retrieved21 June2015.
- ^"Centum gains Sh1bn from Platinum sale".
- ^"Centum Annual Report FY18"(PDF).
- ^Juma, Victor (8 December 2014)."Centum buys majority stake in bottling firm".Business Daily Africa.Retrieved9 December2014.
- ^Herbling, David (10 February 2015)."Centum Enters Beer Market With Danish Carlsberg Franchise".Business Daily Africa.Nairobi.Retrieved10 February2015.
- ^"FMCG Portfolio".
- ^"Private Equity Track Record".
- ^"History".
- ^Obura, Fredrick."Centum investment sells all shares in King Beverage".The Standard.Retrieved27 August2021.
- ^"Central Bank of Kenya: Commercial Banks & Mortgage Finance Institutions".Central Bank of Kenya(CBK). Archived fromthe originalon 1 July 2014.Retrieved31 July2014.
- ^Mwaniki, Charles (20 May 2015)."Centum To Inject KSh1.2 Billion Bond Proceeds into K-Rep Bank".Business Daily Africa.Nairobi.Retrieved21 May2015.
- ^"Financial Services Portfolio".
- ^Otiato Guguyu (8 June 2022)."Centum sells Sidian Bank for Sh4.3bn to Nigerian lender".Business Daily Africa.Nairobi, Kenya.Retrieved8 June2022.
- ^"Centum Integrated Report and Financial Statement FY2022"(PDF).Centum Investment Company Limited.Archived(PDF)from the original on 5 December 2022.Retrieved18 June2023.