Tyre distributor Sameer Africa is set to close the sale of 3.75-acre piece of land which has stalled for three years, after it secured necessary documentation.
The Nairobi Securities Exchange listed firm had earmarked the land valued at Sh921 million to help it repay its loans and cut financing costs.
The sale, however, hit a snag at the government land registry occasioned by migration by the ministry to a new online platform, Ardhisasa.
“I am pleased to report that the company has obtained the requisite completion documents for the transaction and a significant down payment was made by the purchaser in 2024,"said the company’s chairman Erastus Mwongera in its annual report.
"The transaction is now pending customary completion activities and is projected to conclude within the second half of 2025,” added Mr Mwongera. The company said its current liabilities at the end of the year 2024 were higher than the current assets due to deposits paid in relation to the land sale.
Liabilities stood at Sh766 million as at December 2024 compared to current assets of Sh340 million.
It did not have any long-term borrowing as at end of December disclosing it had paid a Sh540.6 million loan owed to related companies –Sameer Investment Sh440.6 million and Sameer Telkom (Sh100 million).
Sameer sits on huge holdings of land acquired decades ago and which have appreciated over time with the tyre distributor reluctant to sale. This will be the first major sale in recent years.
The firm does not state the size of its freehold land but sources had estimated that the company has 85 acres in Nairobi’s Embakasi area.
Sameer booked its properties at a fair value of Sh8.9 billion with gains not recognized in its profit statement quoted as Sh8 billion.
The value of assets is more than eight times its market capitalisation of Sh1 billion as at the end of trading Tuesday when its share price closed at Sh3.65. Its share price has gained 30.3 percent in the last one month.
