PH
Local investors’ reduction of stakes in select Nairobi Securities Exchange-listed companies has resulted in another financial loss for the family of late Kenyan businessman Naushad Merali. The market value of their Sasini Tea holding has decreased by over $2 million due to a dramatic reduction in the shares of the top agricultural company.
The Merali family’s shares in Sasini have lost Ksh298.68 million ($1.88 million) in the last nine days due to a steep drop in the company’s shares on the Nairobi Securities Exchange.
Sasini, a Kenyan agribusiness enterprise noted for cultivating and processing tea, coffee, avocado, and macadamia nuts, works across the country with a focus on value-added output for both local and worldwide markets.
The Merali family is Sasini’s largest stakeholder, with a 65.46 percent interest in the agriculture corporation worth more than $23 million. This ownership establishes the Merali family as one of the wealthiest in not only Kenya, but also East Africa.
Despite its popularity, Sasini shares have had a difficult time in the last nine days. This collapse has resulted in substantial losses for stockholders, including the Merali family, one of the wealthiest investors on the local stock exchange.
Sasini’s stock has declined by more than 9% in the last nine days, from Ksh22 ($0.138) on February 1 to Ksh20 ($0.126) today. This drop has lowered the company’s market capitalization below $30 million.
The latest 9.09 percent drop in Sasini’s shares results in a Ksh298.68 million ($1.88 million) loss in the family’s investment worth. Their holdings dropped from Ksh3.29 billion ($20.65 million) on February 1 to Ksh2.99 billion ($18.77 million).
Despite this setback, the Kenyan Merali family remains among the wealthiest in Kenya and East Africa. Their wide investment portfolio includes a 5.2 percent holding in NCBA Group, a 35% stake in battery company Eveready East Africa, and a 74% stake in tire distributor Sameer Africa.
