Battery distributor Eveready East Africa Plc’s share price (NSE:EVRD) has gained 90.7 per cent since the announcement of a new strategic investor on April 24, igniting hopes of a turnaround of the loss-making firm.

 

The company’s stock hit a 52-week high of Sh1.24 on Tuesday rising from Sh0.65 on April 20, which was the previous trading day before the material announcement was made.

 

Following the disclosures, the battery distributor’s market capitalisation has risen to 260.4 million from 126 million, resulting in a paper gain of Sh123.9 million.

 

The stock gained 9.7 percent on Tuesday alone when a total of 73,500 shares were traded.

The volume has surged to more than 100,000 shares in three days in the wake of the announcement, indicating renewed retail investor confidence in the company, which previously traded on thin volumes.

 

Eveready disclosed to the Capital Markets Authority that its top shareholder East Africa Batteries Limited (EABL) will sell its 73.4 million shares or 34.9 per cent stake to InvestAfrica in a private transaction.

 

Eveready said InvestAfrica would leverage its networks to assist the company roll out a turnaround strategy and support its future growth.

 

The new investor is also expected to tap its networks to assist Eveready in rolling out a turnaround strategy and support its future growth.

 

Upon completion of the transaction, InvestAfrica would strengthen Eveready’s capacity to fund investments required to support its expansion.

 

Further, it will aid in the “diversification of the company’s product lines including oil and gas sectors to improve the financial stability while maximising the shareholders’ value going forward”.

 

Eveready disclosed a larger loss of Sh17.7 million in the six months to March compared to Sh8.4 million a year earlier.

 

The performance was due to sales plunging to Sh10.5 million from Sh41.6 million.

 

MARKET STATUS: CLOSED

loading...
Gainers
Decliners
Volume
B.O.C KENYA84.50+9.74%08/12
EAST AFRICAN CABLES0.96+9.09%08/12
NAIROBI SECURITIES EXCHANGE6.08+4.83%08/12
TOTALENERGIES MARKETING KENYA16.75+4.69%08/12
CARBACID INVESTMENTS15.40+4.05%08/12
HOME AFRIKA0.27-6.90%08/12
UCHUMI SUPERMARKETS0.18-5.26%08/12
LIBERTY KENYA HOLDINGS3.60-5.26%08/12
WILLIAMSON TEA KENYA219.50-5.18%08/12
SCANGROUP2.05-4.65%08/12
SAFARICOM14.552,899,70008/12
KCB GROUP19.301,780,50008/12
EQUITY GROUP HOLDINGS37.90270,40008/12
KENGEN2.04269,80008/12
I&M HOLDINGS17.50210,50008/12

KENYAN SHILLING (KES)

1 EUR = 165.21 KES 08-Dec
1 USD = 153.35 KES 08-Dec

african indices

BRVM-CI210.57+0.63%08/12
BSE DCI8,891.76+0.07%08/12
DSE ASI1,741.08+0.45%08/12
EGX 3024,686.16-0.07%07/12
GSE-CI3,130.60+0.06%08/12
JSE ASI73,790.85-1.33%08/12
LuSE ASI11,109.00-0.03%08/12
MASI11,885.32+0.49%08/12
MSE ASI110,706.19-0.14%08/12
NGX ASI71,541.74+0.12%08/12
NSE ASI93.94+0.01%08/12
NSX OI1,538.46-4.72%08/12
RSE ASI143.78-08/12
SEM ASI1,884.99-0.05%08/12
TUNINDEX8,610.61+0.30%08/12
USE ASI891.04+0.16%08/12
ZSE ASI197,660.65+2.25%08/12