Sameer's Mombasa Road tyre plant was closed in 2016. FILE PHOTO | NMG
Sameer Africa 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
was in June demoted from the manufacturing category.
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