Old Mutual Holdings Plc shareholder Joel Kibe has written to the Capital Markets Authority (CMA) to conduct investigations on some of the firm’s transactions and stop further sale of company’s assets.
Through his lawyers Gichuki Kinga’ra and Co. Advocates, Kibe says the firm has been “highly prejudicial to minority shareholders” in a number of transactions the firm has undertaken.
According to Kibe who own shares valued at Ksh 246.7 million in the firm, Old Mutual has been disposing of assets contrary to CMA regulations.
“The company has disposed of assets listed as belonging to Old Mutual Holdings and its subsidiaries without proper disclosure or accounting for the proceeds to shareholders,” he says in the letter.
In a notice to shareholders dated July 31, 2024, Old Mutual announced completion of the sale of its stake in UAP Insurance Tanzania Limited which took effect from August 1, 2024.
Last month, High Court in Nairobi issued orders stopping the firm from selling assets in a case against the billionaire investor.
Mr Kibe has further requested CMA to provide copies of transactional documents regarding the transaction prior to approval of the takeover.
In the letter, Kibe is accusing the firm of diluting minority shareholders’ stake by nearly 40pc through issuance of preferential shares, securing loans without consulting minosrity shareholders, lack of liquidity, mismanagement and non-payment of dividends.
Kibe now wants the authority to conduct investigations on the allegations and stop any further dilution of shares through issuance of preference shares without proper consultation and approval.
In the half year period to June this year, the firm reversed Ks 195 million losses it incurred last year to post a Ksh 327 million net profit.
