Billionaire investor Baloobhai Patel has bought an additional 2.5 million stake in Absa Bank Kenya, expanding his shareholding in the lender to a new high.
The businessman raised his holdings in the bank to 50.06 million shares (equivalent to a 0.92 percent stake) as of July 7, 2023, according to regulatory filings.
This marked an increase from the 47.56 million shares (0.88 percent) he held at the end of last year.
His current stake is valued at Sh618.3 million, with the latest share additions worth Sh30.8 million based on Absa’s share price of Sh12.35 during Monday’s trading.
The stock has declined slightly from the 52-week high of Sh13 that was recorded on April 6, 2023.
Mr Patel’s expansion of his Absa stake comes amid increased earnings and shareholder returns, with the bank lifting its dividend payout to Sh1.35 per share in the year ended December 2022.
The Nairobi Securities Exchange-listed firm previously paid a dividend of Sh1.1 per share comprising interim and final distributions.
The bank is among publicly-traded lenders that will soon announce their performance in the half-year ended June, a period marked by rising interest rates and high inflation.
Absa is among the NSE-listed firms where Mr Patel has significant stakes. His multi-billion-shilling equities portfolio includes holdings in Carbacid Investments, Bamburi Cement and Co-operative Bank of Kenya.
