Billionaire investor John Kibunga Kimani has raised his stake in Centum Investment Company Plc by purchasing an additional 10.8 million shares, now valued at Sh90.7 million.
His total shares in the company rose from 34.6 million to 45.5 million in December 2023.
Dr. Kimani’s stake now stands at 6.84 percent, ranking him third among shareholders after the late Chris Kirubi’s estate and the Kenya Development Corporation.
Dr. Kimani’s investment in Centum comes amid a decline in the company’s stock price. The share price dropped to Sh7.6 on May 22, 2023, before rebounding to Sh8.34.
Centum’s share price has significantly decreased since its peak of Sh84.5 in 2014, following the cancellation of a coal-fired power plant project in Lamu.
Despite making losses in recent years, Centum maintains dividend payouts using cash generated from its securities portfolio.
The company has been reducing its borrowings and aims to become debt-free at the holding company level.
In the half-year ended September 2023, Centum’s net asset value per share stood at Sh62.82, indicating that the company’s share price is trading at an 86.7 percent discount.
Overall, Centum’s performance reflects a mixed picture, with improvements in some segments and challenges in others.
Its property business, including the Two Rivers Development project, has shown signs of recovery, while the financial services operation, comprising Sidian Bank, experienced a decline in profits.
However, at the holding company level, Centum reported a significant surge in net profit, reflecting its efforts to streamline operations and reduce borrowing costs.
Dr. Kimani’s increased investment in Centum underscores his confidence in the company’s long-term prospects, despite its current market challenges.
