Home » Nairobi-based firm linked to Kenya’s Merali family sets sights on $6.3 million from land sale

Nairobi-based firm linked to Kenya’s Merali family sets sights on $6.3 million from land sale

by Mfonobong Nsehe
Naushad Merali

Sameer Africa, the Nairobi-based company majority owned by the prominent Merali family, is embarking on a strategic move to raise Ksh879 million ($6.32 million) through the sale of 3.75 acres of land.

The Nairobi-based company is expected to realize a remarkable gain from this transaction. This decision comes as the company faces liquidity challenges stemming from its struggling tires and automotive products business.

The land, which has been carried on the company’s books at a historical cost of Ksh15 million ($108,000), is valued at a significant Ksh879.04 million ($6.32 million) in the present market.

This sale marks a significant milestone for Sameer Africa, as it represents the first major divestiture of land in recent years. The company holds a substantial portfolio of investment properties, acquired decades ago, which have appreciated significantly in value.

Although the exact size of Sameer’s freehold land is undisclosed, industry insiders estimate the company’s holdings to be around 85 acres in Nairobi’s Embakasi area.

Sameer Africa primarily focuses on the manufacturing, importation, and sale of tires, as well as leasing out its premises.

The company’s wide range of products includes passenger textile and steel belted radials, 4×4 tires, light truck radial and bias, truck, and bus, agricultural, industrial, and Off-The-Road tires, all under the reputable brand name Yana.

With a 74-percent stake, the Merali family, custodians of the late tycoon Naushad Merali’s estate, serves as the majority shareholder of Sameer Africa. The family holds a prominent position among Kenya’s wealthiest families, exerting a significant influence on the company’s direction.

In 2021, Sameer Africa unveiled plans to sell a portion of its properties as part of a broader effort to strengthen its financial position. The company has faced numerous challenges in its operating environments, which have adversely affected its liquidity.

The fair value of Sameer Africa’s land and commercial properties stood at Ksh7.58 billion ($54.6 million) at the end of the previous year, surpassing the firm’s market capitalization on the Nairobi Securities Exchange which currently stands at Ksh662 million ($4.8 million).

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