Kenyan businessman Baloobhai Patel has once again made a move in the stock market by acquiring an additional 14.6 million shares in Co-operative Bank (Co-op Bank) worth Ksh181.8 million ($1.38 million).
The news comes after his previous acquisition of 6.5 million shares worth Ksh75.5 million ($647,200) in Co-op Bank nearly 10 months ago, which increased his initial shareholding of 33.9 million shares (0.58 percent) at the start of 2021 to 40.4 million shares (0.69 percent) presently.
Patel has now solidified his position as a major player in the Kenyan financial sector with his latest acquisition of new shares in Co-operative Bank, a top financial services group that holds the rank of the third-largest bank in Kenya.
His stake in the bank has now increased to 0.94 percent from the previous 0.69 percent, further cementing his reputation as not just one of the wealthiest investors on the Nairobi Securities Exchange but as one of the most affluent businessmen in the country.
Owing to the recent acquisition, Patel is now the second-largest individual shareholder in Co-op Bank, following Gideon Muriuki, a prominent business executive who holds a two-percent stake in the financial services group.
Patel embarks on major restructuring initiative
Patel has been pursuing a restructuring process lately, which involves transferring some of his direct equity positions in publicly traded companies to his holding company, Aksaya Investment Holdings Limited. This process is part of a succession plan that he began in 2015.
As part of the restructuring plan, Aksaya will acquire a 49.9-percent stake in Carbacid Investments Plc in a private transaction worth Ksh1.5 billion ($11.4 million), subject to approval from the Capital Markets Authority.
As the restructuring unfolds, Rohan Baloobhai Patel, Patel’s son, is expected to take on a leadership role.
Rohan, who manages the family’s property investment business and is the director of corporate development at Sanlam Kenya, has been actively involved in managing the family’s investment equity portfolio, making him a natural fit for this position.