ICEA Lion buys asset manager Stanlib Kenya

Fund manager ICEA Lion Asset Management has signed an agreement to acquire its rival Stanlib Kenya in a deal estimated at more than Sh1.5 billion.

The transaction, expected to be completed early next year, will also see ICEA inherit from Stanlib the role of managing property fund Stanlib Fahari I-Reit, which is listed on the Nairobi Securities Exchange.

ICEA will earn fees of more than Sh80 million per year to oversee the property fund.

The deal gives ICEA, which is owned by the Philip Ndegwa family, an opportunity to scale up its asset management business besides the Reit management business, which it had earlier planned to start from scratch.

Stanlib is one of the largest fund managers and runs an asset pool of more than Sh100 billion.

“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 notice on Friday.

“In the meantime, the unit holders and the public are advised to exercise due caution when dealing in the securities of the Reit until further announcements are made.”

The disclosure saw the Reit’s share price rise to highs of Sh9 yesterday as investors speculated that the Ndegwas could make a bid to also buy the property fund.