Olympia Capital chief executive director Michael Matu. PHOTO | FILE | NATION MEDIA GROUP
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The deputy chairman represents the interests of former Mathira MP Matu Wamae’s family, who are the majority owners of the company.
Top shareholders of the NSE-listed investment company Olympia Capital have transferred significant blocks of stocks, signalling ownership changes at the top bracket of the firm.
The latest regulatory filings show that Michael Matu, a former CEO of the company and current deputy chairman, has transferred 449,600 shares, cutting his stake to 1.71 per cent as at end of June from 2.86 per cent that he held in the same month last year.
The deputy chairman represents the interests of former Mathira MP Matu Wamae’s family, who are the majority owners of the company. Mr Matu, who has been the face of the company even after stepping down as CEO, had not responded to our requests for comment on the share transfers by the time of going to press.
Olympia has posted mixed performances since raising cash from shareholders in 2007 through a rights issue that netted Sh420 million. The company said it spent the cash to buy a 12.5 per cent in real estate holding company Heri Ltd, among other investments. In the year ended February, Olympia relied on ‘other income’ to grow its net profit five-fold to Sh45 million.
The company did not declare a dividend despite of the profit growth, making it the second consecutive dividend drought after its last payout in the year ended February 2012. Its ‘other income’ rose nearly eight-fold to Sh88 million, but it is unclear whether it was boosted by asset sales.
Sales from its core business dropped 39.3 per cent to Sh500.5 million on what the company attributed to market share losses, reduced demand for building materials and delay of several construction projects. Olympia’s share has gained 33 per cent in the past one year to the current Sh4.9 per unit.
Wealthy businessman Paul Ndung’u is also one of the other key shareholders whose shareholding in the company has changed. Mr Ndung’u bought 74,500 shares, raising his ownership to 11.53 per cent from 11.35 per cent. The businessman is a long-term investor in Olympia where he resigned as a director in 2012.
A company associated with Mr Ndung’u, Mobicom Kenya Limited, also appeared among Olympia’s top owners for the first time with 449,600 shares. Institutional investor Dunlop Properties bought 89,300 shares in the same period, boosting its stake to 18.84 per cent from 18.61 per cent and cementing its position as Olympia’s largest shareholder.
The transfer occurred ahead of the investment firm’s plans to diversify by venturing into manufacture and distribution of beauty and cleaning products. Olympia also intends to expand into Zambia and Zimbabwe in the near-term, adding to its current presence in Kenya, South Africa, and Botswana.
Olympia says its new strategic direction should boost its fortunes after years of relatively weaker performance compared to other investment firms like Centum. “We are planning to go into beauty and cleaning products. There is a lot of competition in the building materials space and we need to diversify,” Olympia’s acting CEO Gladys Kamau told Business Daily.
She said the company is considering manufacturing products such as detergents and lotions besides acting as a regional distributor for international producers of the commodities. Olympia currently deals in real estate, fire prevention equipment and manufacture of products used in the construction industry including floor tiles and door frames.
It sells the products in Botswana and South Africa and in the East African market which it serves from Nairobi, but this portfolio of merchandise has not yielded significant growth for the company.
Olympia plans to establish a presence in Zambia and Zimbabwe in the next 12 months in joint ventures with investors in those markets. Mrs Kamau said the company is looking at various options to fund the expansion plan, including debt and raising more cash from shareholders.
