KenolKobil Ltd., a Kenyan fuel retailer operating in 10 countries, fell to the lowest in more than 16 months over uncertainty about the company’s plans to sell assets to recapitalize, Standard Investment Bank Ltd. said.
The stock fell 7.6 percent to 9.10 shillings by the close in Nairobi, the lowest since Dec. 15, 2011, according to data compiled by Bloomberg. About 5.7 million shares were traded, or 7.8 times the three-month daily average.
After the company swung to a loss of 6.28 billion shillings ($75 million) in 2012, Managing Director Jacob Segman said on April 8 that KenolKobil “recently put up for sale some of the group’s under-performing and non-performing assets.” The move is meant to reduce borrowing and finance costs, he said in a statement. No further details have been given.
“There is uncertainty on how they intend to dispose of some assets to recapitalize,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank said by phone today. “It’s not clear if they will sell some assets or non-performing subsidiaries, when and how it will be done,” he said.
KenolKobil didn’t declare a dividend. The shares have fallen 33 percent this year, the worst-performing stock on the Nairobi Securities Exchange All-Share Index, which has gained 24 percent during the period.