According to recent reports the NSE (Nairobi Securities Exchange) has acquired a 4 percent stake in the Dar Es Salaam Stock Exchange and has revealed that its reasons for doing so, are strategic.
Mr. Geoffrey Odundo who is the Chief Executive Officer (CEO) of the Nairobi Securities Exchange (NSE) made it known while speaking to NTV Kenya that, “Back in 2017, we took a position in the Dar er Salaam Stock exchange. Dar Es Salaam Stock exchange was doing an IPO. And its always been part of our regional strategy to invest in related businesses and so we invested in the DSE during the IPO. We however were able to make an exit because we got some profit. But again the board reconsidered this position and felt that we should have taken a strategic position… And so we went back and took a bigger stake of almost 4.9%..”
The Chief Executive Officer (CEO) of the Nairobi Securities Exchange (NSE) added that the establishment had at first set a target of a 10 percent stake but as a result of restrictions placed on external investors, had to settle on a cap of 5 percent.
Mr. Geoffrey Odundo stated further that the value of the investment by the Nairobi Securities Exchange (NSE) into the Dar Es Salaam Stock Exchange (DSE) experienced a significant drop as a result of the drop in share price for the Dar Es Salaam Stock Exchange (DSE).
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