The Victoria Commercial Bank has increased its stake in the Nairobi kindergarten known as the Montessori Learning Centre.
The bank has announced in its latest annual report that it acquired additional shares worth Sh. 20.08 million at Montessori Learning Centre in the financial year ended December 2023.
“During the year, the bank sub- scribed to additional shares of the school at a consideration of Sh. 20.08 million. These additional shares did not result in any changes in the percentage of ownership by the bank,” the bank stated.
This was an addition to the 24.9 per cent stake that the bank acquired at the Nairobi kindergarten in the year 2021.
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This acquisition was initially launched as part of a debt settlement deal between Victoria and Montessori. This was after Montessori defaulted a Sh. 200 million loan it had take from the bank.
To avoid placing the institution under the hammer, Victoria and Montessori agreed to a debt-for-shares swap deal.
According to a related report that appeared in the media on Tuesday, Victoria’s stake in the school is rare for its type of institution.
“The Central Bank of Kenya restricts banks from owning stakes in non-financial institutions but offers exemptions when the acquisition is a debt swap deal involving a distressed borrower,” the media reported.
This makes the deal between Victoria and Montessori legal. The school, which was started in 1998, uses the British curriculum. It runs classes starting at Kindergarten and preparatory.
In the 2023 financial year, Victoria posted a Sh. 723.6 million net profit from Sh. 649.5 million net profit in the previous year.