Sameer Africa #ticker:FIRE has been removed from the automobiles and accessories class at the Nairobi bourse after closing its Mombasa Road tyre manufacturing plant in 2016 citing competition from cheaper Asian goods.
The Nairobi Securities Exchange has now moved Sameer Africa to the commercial and services category after the firm opted to import tyres from China to stay competitive in the Kenyan market.
The shift is also informed by the fact that Sameer Africa is engaged in the letting of investment property — with its real estate portfolio made up of an industrial park, business park and the defunct tyre factory premises.
“The security will be re-classified into the commercial and services sector effective September 1, 2017,” the NSE told the Business Daily.
Sameer Africa is 72.15 per cent owned by billionaire Naushad Merali. The company has been in the red for three years in a row, posting a net loss of Sh652 million as at December 2016.
This becomes the second category change at NSE after Eveready East Africa #ticker:EVRD was in June demoted from the manufacturing category.