Kenya Pipeline shares rise 10% after Dangote investment
By the AFREEQUE newsroom, based on Kenyans
Kenya Pipeline Company shares rose 10% in a week following Nigerian billionaire Aliko Dangote’s investment, according to President William Ruto. The head of state said the 35% stake retained by the government could double or triple in value in the coming years, he told a gathering in Kitui.
Shares in Kenya Pipeline Company (KPC), a Kenyan petroleum products transport company, rose 10% in one week following an investment by Nigerian billionaire Aliko Dangote. Kenyan President William Ruto announced the increase on Tuesday 27 October at a groundbreaking ceremony in Kitui County, Kenyans reports.
Ruto believes the rise could increase KPC’s revenues. The Kenyan state now holds 35% of the company, down from 100%, and the president said that in a few years this stake could be worth as much as the entire company was before the sale. He defended Dangote’s share purchase and warned officials against seeking to interfere with the investment.
Dangote announced on 21 October that he had acquired 25% of KPC for about 42.5 billion Kenyan shillings, or $327 million. The transaction involved 4.5 billion shares, sold for between 9.02 and 9.36 shillings each. MP Ndindi Nyoro said public pension funds had been ordered to buy KPC shares before some of their holdings were sold to a private investor.
The rise announced by Ruto follows Dangote’s acquisition of 25% of Kenya Pipeline Company, announced on 21 October. Two days later, MP Ndindi Nyoro accused the president and the investor of seeking to take control of the company.
