Eveready share price rises as investors mull change of strategy

Eveready East Africa managing director Jackson Mutua during the unveiling of the company's diversification plan on September 29, 2014 at a Nairobi hotel. The company is owed Sh11 million by financially troubled Uchumi Supermarkets. FILE PHOTO | SALATON NJAU |

What you need to know:

  • Investors seem ready to buy into the company’s announcement to scale down operations.
  • The firm now wants to develop its land in Nakuru into real estate.

Eveready East Africa shares at the Nairobi bourse closed the week’s trading at Sh4.10, about 39 per cent higher than Monday’s opening price, as investors seem ready to buy into the company’s announcement to scale down operations.

On Monday, Eveready East Africa announced plans to close down its D-batteries factory in Nakuru, opting to import them from Egypt.

The firm now wants to develop its land in Nakuru into real estate.

In an interview with the Nation on Thursday, the company’s managing director, Mr Jackson Mutua, said the management was in talks with potential partners on how to turn the prime land where the factory stands into a real estate development.

The land, on the outskirts of the fast-expanding Nakuru town, touches the Nakuru-Eldoret highway and neighbours the upmarket Kiamunyi estate.

Among the options the company is considering are building a three or four-star hotel, a business park and other commercial properties to let.

DISTRIBUTE BATTERIES

Mr Mutua said that although the factory had stopped production, the company would continue to distribute batteries in its D-range, which will be imported from Egypt where the cost of production is lower than in Kenya.

The company, which distributes its products in Tanzania through local companies, said it would review its prices there in view of the change of business strategy.

However, it has formed a subsidiary, Flamingo Uganda, through which it will sell its products in that country.

Besides the firm’s existing battery range, it distributes lifestyle products such as shaving machines under the Schick brand and a range of energy gadgets, including lanterns and lights for indoor and outdoor use.

The company has also started distributing Turbo and Turbo II motor vehicle batteries.