Stanlib Kenya Limited’s plan to transfer its Real Estate Investment Trust (REIT), listed on the Nairobi bourse, to ICEA Lion Asset Managers has been cleared.
“It is notified for general information that in exercise of the powers conferred upon the Competition Authority by section 46 (6) (a) (ii) of the Competition Act, the Competition Authority has authorised the proposed transaction as set out herein,” Competition Authority of Kenya director-general said in a gazette notice.
Before opting for acquiring a going concern, ICEA had planned to venture into the Reit management business from scratch.
The deal estimated at more than Sh1.5 billion, which was announced in November, will see ICEA venture into Reit management, scaling up its asset management business.
ICEA lion management will not assume any of the debts or liabilities of Stanlib Kenya limited in connection with or related to that business.
“The assets being acquired by ICEA include Stanlib's investment management mandates and all rights, obligations, and benefits of Stanlib in terms of, or in connection with, Stanlib's role as promoter and Reit manager,” the property fund said in a statement.
Once the transaction is completed, ICEA will earn fees of more than Sh80 million annually to oversee the property fund.
“In the meantime, the unitholders and the public are advised to exercise due caution when dealing in the securities of the Reit until further announcements are made,” Stanlib said.
Stanlib is one of the largest fund managers in the country, running an asset pool of more than Sh100 billion.
Implementation of the agreement is still subject to the approval of the Capital Markets Authority and the Trustee.
