Billionaire investor Chris Kirubi has bought 32.6 million shares of investment firm Centum worth over Sh. 1 billion to raise his stake in the firm to 29.9 per cent. The billionaire investor purchased the shares amounting to a 4.9 per cent stake over the past two years.
Mr Kirubi’s equity in Centum stood at 24.99 per cent in September 2013 when he applied to the Capital Markets Authority (CMA) for an exemption from complying with the requirements to make a takeover.
The regulator requires investors who own more than a quarter of a Nairobi Securities Exchange-listed firm to state whether they intend to take full control when buying stocks equivalent to at least five per cent in it.
August regulatory filings show that the businessman had reached his target, holding a 28.19 per cent stake directly and the balance through investment vehicles including International House Limited.
The state-owned Industrial & Commercial Development Corporation (ICDC) holds the second largest stake in Centum at 22.97 per cent.
Centum’s share price rose to a high of Sh84.5 last year but has since dropped to trade at Sh53 yesterday, valuing Mr Kirubi’s stake at Sh10.5 billion.
The share decline has hurt investors who bought at the peak the most since the company doesn’t pay dividends, saying its chief emphasis is on maximising shareholder wealth.
The dividend freeze has left shareholders to rely heavily on capital gains expected to be driven by an increase in the company’s net worth or book value.
Mr Kirubi has in recent years liquidated his interests in other publicly traded companies including KCB and Safaricom, concentrating his stock investments in Centum.
