Billionaire investor John Kibunga Kimani has augmented his ownership in Centum Investment Company Plc by acquiring an additional 10.8 million shares, presently valued at Sh90.7 million.
In December 2023, his total shares in the company surged from 34.6 million to 45.5 million.
Dr. Kimani’s stake now holds at 6.84 percent, placing him third among shareholders, following the late Chris Kirubi’s estate and the Kenya Development Corporation.
This move by Dr. Kimani occurs amidst a dip in Centum’s stock price, which plummeted to Sh7.6 on May 22, 2023, before recovering to Sh8.34.
Centum’s share price has significantly dwindled since its peak of Sh84.5 in 2014, following the cancellation of a coal-fired power plant project in Lamu.
Despite facing recent losses, Centum continues to distribute dividends, utilizing cash generated from its securities portfolio.
The company is actively reducing its borrowings and aspires to achieve a debt-free status at the holding company level.
As of the half-year ending September 2023, Centum’s net asset value per share was Sh62.82, indicating an 86.7 percent discount in its current share price.
Centum’s overall performance presents a mixed scenario, with certain segments displaying improvements, such as the property business, including the Two Rivers Development project, while the financial services operation, including Sidian Bank, witnessed a decline in profits.
However, at the holding company level, Centum reported a substantial surge in net profit, reflecting its efforts to streamline operations and minimize borrowing costs.
Dr. Kimani’s heightened investment in Centum underscores his optimism in the company’s long-term potential, despite the prevailing market challenges.
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