Cytonn Investments Management Plc has agreed to sell 20 per cent of its shareholding to Taaleri of Finland. Taaleri is a financial group, whose parent company Taaleri Oyj’s shares are listed on the Nasdaq Stock Exchange and manages investments worth Sh813 billion as well as provides funding in the capital-intensive real estate sector in Africa.
The firm has invested over Sh5 billion towards projects and investments it handles with Cytonn – namely The Alma in Ruaraka, The Ridge in Ridgeways and Situ Village and Amara Ridge both in Karen – which have already been delivered to homeowners.
In addition to the company’s investments, Taaleri has already received back its investments from Amara Ridge and The Alma, underlining Cytonn’s commitment to deliver above-average returns in real estate for global institutional investors.
Edwin Dande, Cytonn Investments chief executive officer said during the signing ceremony that they were grateful to Taaleri for the continued support they have shown to the company.
He said this transaction was important for two reasons. “First it affirms market confidence in our brand and unique business model and second it provides a strong anchor investor as we prepare for our IPO (Initial Public Offering), which we hope to complete next year, either at a local or global exchange,” Dande said.
Following the move, he said the company has already engaged with two transaction advisors in Nairobi and London to explore a local listing either at the Nairobi Securities Exchange or a listing on the London Stock Exchange.
“The ultimate listing jurisdiction will depend on valuation, investor interest and ease of listing. We also hope to broaden our partnerships by bringing on board one additional local or global anchor institutional investor at the IPO,” Dande added.
Taaleri Group Chief executive officer, Juhani Elomaa said the companies are now in their fifth year of partnership, and Cytonn remains a trusted partner for deploying capital to the East Africa region.
He said through Cytonn Investment, the Finnish Pension Funds and Investors have not only earned attractive returns but have also developed the country,” he said.
“The two firms have contributed to growing the Kenyan economy, creating jobs, and driving the deepening of capital markets through structured finance transactions,” Elomaa added.
He said the share options agreement for a 20 per cent stake is an opportunity to deepen the relationship beyond project finance to shareholding.