Royal Credit Limited has warned the public and potential investors against purchasing shares in Directline Assurance, dismissing reports of a 90 per cent share sale as false and misleading.
In a letter dated July 18 and addressed to the Insurance Regulatory Authority (IRA), Royal Credit, led by Dr S.K. Macharia, said it was shocked by a public notice claiming a stake in Directline was up for sale. The advert allegedly priced each share at Kshs 81.
“We have seen an attached ad, purporting to sell 90% shares of Directline Assurance Company Limited (DAC) and is signed by purported directors on behalf of purported shareholders,” read part of the Royal Credit Limited letter.
Royal Credit confirms no approval for share sale
The company has denied any involvement in the alleged sale, stating that no approval had been given to sell any shares and warned that the advert was issued without the knowledge of the actual shareholders.
Royal Credit described the notice as part of a fraudulent scheme aimed at misleading the public. The firm urged Kenyans not to fall for the false claims.
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“The public is advised to ignore the ad and not to be trapped in a corrupt manipulation by those involved as they stand to lose their money for no reason,” the company warned.
Call for IRA action
The firm has asked the Insurance Regulatory Authority (IRA) to clarify whether it received any forged documents related to the supposed share transaction. It also questioned the legitimacy of those behind the sale notice.
“IRA is requested to confirm whether it has issued written authority to those purporting to sell the shares of DAC,” the statement added.
Royal Credit stressed that only legitimate shareholders have the authority to approve any sale.
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It further insists that any sale of shares must be approved solely by the rightful shareholders, not by individuals with no legal authority, and warns any interested buyer to perform due diligence before making a purchase, as no Directline shares are currently up for sale.
Potential investors warned
The firm urged potential investors to perform due diligence before engaging in any purchase. It warned that anyone who proceeds with such a transaction risk losing their money.
Royal Credit maintained that it has not and does not intend to sell any of its shares in Directline Assurance.
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