The Nairobi Securities Exchange (NSE) has disclosed that it has acquired a 4 per cent stake in the Dar es Salaam Stock Exchange citing strategic reasons.
“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%..” Said Mr Geoffrey Odundo, the CEO of the NSE while speaking to NTV Kenya.
Mr Odundo further disclosed that they were targeting a stake of almost 10 per cent but due to restrictions on external investors, they were capped at 5%.
He also disclosed that the value of NSE’s investment in DSE has declined mainly due to the decline in DSE’s share price as shown in the chart below.