Following a $2.3-million increase in the market value of his stake in Equity Group Holdings in the first 12 days of 2023, Kenyan multimillionaire banker James Mwangi has seen the market value of his stake in the Nairobi-based lender fall by more than $3.8 million.
According to data tracked by Billionaires.Africa, Mwangi, one of Kenya’s wealthiest investors and businessmen, has seen the market value of his equity stake in Equity Group Holdings decrease by Ksh498.5 million ($3.84 million) in the past 60 days.
Equity Group Holdings is a leading financial services conglomerate headquartered in Nairobi, the capital and largest city of Kenya. In addition to its Kenyan operations, it has subsidiaries in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of the Congo.
Mwangi, who has been instrumental in the growth and transformation of Kenya’s financial services industry, owns a significant 3.38-percent stake in Equity Group, or 127,809,180 shares.
The market value of his stake in the leading lender has fallen by Ksh498.5 million ($3.84 million) since Jan. 16, exactly 60 days ago, from Ksh5.99 billion ($46.23 million) to Ksh5.49 billion ($42.38 million). This is due to the bank’s share price falling 8.3 percent from Ksh46.9 ($0.362) to Ksh43 ($0.332).
The recent drop in Mwangi’s stake has pared his earlier gains this year to a loss of nearly $1.5 million, as investors on the Nairobi Securities Exchange remain cautious of their equity positions in the face of recent macroeconomic headwinds in the economy, which continue to impact company financial performance.
James Mwangi’s Equity Group to receive $4.1 million for taking over Spire Bank
Equity Group is poised to receive millions of dollars as a result of Mwalimu Sacco’s acquisition of financially distressed Spire Bank. In the deal, Mwalimu Sacco agreed to pay Equity Ksh510 million ($4.1 million), representing the difference between the bank’s assets and liabilities.
Unfortunately, this indicates that Spire Bank has no value, resulting in significant losses for the teachers who purchased a majority stake in 2014.
The acquisition of Spire Bank presents both challenges and opportunities for Equity Group, which, under the leadership of Mwangi, reported profits exceeding $280 million in the first nine months of 2022.
