Co-op Bank boss buys Sh37m more shares

Co-op Bank’s chief executive Gideon Muriuki. FILE PHOTO | NMG 

By VICTOR JUMA
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Summary

• The purchases have restored his stake to two percent, an ownership level he has maintained in the past.
• Mr Muriuki’s stake stood at 1.79 percent in December 2018 and it climbed following a series of investments last year including the latest transactions in the four months to December.
• He has remained the top individual investor in the lender since it listed on the Nairobi Securities Exchange (NSE) in 2008.

Co-op Bank’s chief executive Gideon Muriuki bought additional 2.4 million shares with a current market value of Sh37 million in the four months ended December 2019, according to regulatory filings.

The purchases have restored his stake to two percent, an ownership level he has maintained in the past.

Mr Muriuki’s stake stood at 1.79 percent in December 2018 and it climbed following a series of investments last year including the latest transactions in the four months to December.

Despite occasionally selling the bank’s shares over the years, he has remained the top individual investor in the lender since it listed on the Nairobi Securities Exchange (NSE) in 2008.

Mr Muriuki has previously said that his ownership should be seen as a sign of confidence in the bank. The latest purchases came after a significant decline in the lender’s share price, offering investors an opportunity to buy into the company at a significant discount.

Market data shows that Co-op Bank’s stock traded at highs of Sh16 on February 1, 2019 and fell to lows of Sh11.5 on August 21, 2019.

The share price decline was largely due to a general bear run which had gripped the Nairobi bourse. Co-op Bank’s share price has since rallied and closed at Sh15 on Wednesday.

The lender is among the beneficiaries of increased demand for bank shares following the scrapping of lending rate controls on November 7, 2019.