The East Africa Cables #ticker:CABL share Monday fell by 5.2 percent at the Nairobi Securities Exchange (NSE) to a six-month low after SBM Bank Kenya published a liquidation notice on the manufacturer.
It closed at Sh2.37 a share, compared to Friday’s Sh2.50, reflecting negative investor sentiment to the winding up notice that may end up costing them their investment if successful.
SBM filed the notice after EA Cables defaulted on a Sh285 million loan, which it has been unable to restructure.
The bank invited other parties supporting or opposed to the petition to send their representatives on February 4 when the matter will be mentioned at the High Court.
The share price fall Monday left investors in the firm holding paper wealth of just Sh600 million, having endured a sharp erosion from Sh4.02 billion over the past five years when Cables and its parent firm TransCentury #ticker:TCL (who hold a 68.38 percent stake) have faced financial headwinds.
The liquidation notice comes even as the firm marked a return to profitability in the six months ended June 2019 with net earnings of Sh634 million in the period compared to a loss of Sh303 million in June 2018.