Ndindi Nyoro, has significantly expanded his portfolio on the Nairobi Securities Exchange (NSE) with the acquisition of 20 million shares in infrastructure company TransCentury Plc.

This purchase positions the Kiharu PM as the fourth largest individual shareholder in the company, trailing private equity firm Kuramo, Anne Pearl Karimi Gachui, and former taxman Michael Gitau Waweru.

Nyoro's stake, currently valued at Sh8.6 million, represents 1.77 per cent ownership of TransCentury.

This move signifies his focus on undervalued stocks, with TransCentury's share price closing at a modest 43 cents on Wednesday.

This investment comes after Nyoro's previous holding in Kenya Power, revealed in June 2023, saw a reduction.

Read More

  1. Govt urged to reinstate stamp duty exemption for real estate investment trusts
  2. NSE partners with First Future to launch a USSD-based platform for investors
  3. Capital Markets Authority prioritizes domestic investors in new strategic plan

His initial stake of Sh51.35 million, comprised of 32.5 million shares at the prevailing price of Sh1.58, had shrunk to 20.72 million shares by December 2023 due to the sale of 11.78 million shares.

Mr. Nyoro's increased stake in TransCentury likely stems from a combination of factors.

He may have participated in the company's recent rights issue, which offered five new shares for every existing share held. This rights issue aimed to raise Sh2 billion for additional working capital.

The rights issue significantly impacted TransCentury's ownership structure. Majority shareholder Kuramo strategically leveraged the opportunity to bolster its stake to a commanding 74 per cent, holding 835.3 million shares by February 2024, a significant increase from their 25 per cent stake (93.7 million shares) in October 2022.

Notably, Kuramo partially financed its rights issue participation by converting a shareholder loan into equity.

The post-rights issue landscape reveals a reshuffled ownership structure. While Michael Gitau Waweru maintained his holding of 21.3 million shares, his stake diluted to 1.89 per cent from the previous 6 per cent.

Conversely, Ephraim Kariithi Njogu joins Nyoro as a new significant investor, holding 12.5 million shares, translating to a 1.11 per cent stake.

Following the rights issue, TransCentury's total issued shares have grown from 375.2 million to 1.1 billion. Local individual investors now hold a combined 20.36 per cent stake in the company, with prominent figures like Peter Tiras Kanyago, Gitau Zephaniah Mbugua, Robin Munyua Kimotho, Stephen Njoroge Waruhiu, Edward Njoroge, and Joseph Mbui Magari contributing to this local ownership.

It's important to note that TransCentury is currently engaged in a dispute with Equity Bank regarding a Sh4.5 billion ($34.3 million) debt, aiming to prevent a potential takeover.