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The stake of fallen Kenyan advertising mogul Bharat Thakrar in WPP Scangroup, a subsidiary of WPP Plc, has dropped by $342,170 (Ksh36.92 million) in 61 days.
The decline comes on the back of a sell-down in the marketing and communications company’s shares.
As of press time, 5:00 pm (UTC+1), June 30, shares in the company were trading at $0.048 (Ksh5.20), or 13.33-percent lower than the opening price of $0.056 (Ksh6.00) this year.
WPP Scangroup is the largest marketing and communications company in Sub-Saharan Africa. It has expanded its footprint across 25 African countries through its network of businesses.
The company’s shares have been on a downward trend since CEO and Founder Bharat Thakrar was suspended in February alongside Chief Financial Officer Satyabrata Das over allegations of gross misconduct.
The suspension was caused by an investigation into allegations of gross misconduct and possible offences in their capacity as senior executives and employees. The investigation ultimately led to a delay in the publication of its audited financial statements for 2020.
This uncertainty made some investors wary and convinced them to exit their position in WPP Scangroup, leading to a decline in the company’s share price.
In reaction to this bearish sentiment, the company’s share price on the Nairobi Stock Exchange has dropped from $0.056 (Ksh6.00) on April 30 to $0.048 (Ksh5.20) as of press time today.
Thakrar holds an 11-percent stake in WPP Scangroup with his wife, Sadhna Bharat Thakrar. His stake accounts for 46,147,264 issued shares.
With the decline in the share price, the market value of his stake has decreased from $2.57 million (Ksh276.88 million) to $2.22 million (Ksh239.97 million) between April 30 and June 30.
This translates to a loss of $342,170 (Ksh36.92 million) for the businessman in 61 days.
