Kenyan Shareholders Lose Over Ksh1 Billion In Sportpesa Shake-up -

Kenyan Shareholders Lose Over Ksh1 Billion In Sportpesa Shake-up

Paul Wanderi Ndungu with Ronald Karauri
Paul Ndung'u with Ronald Karauri. [PHOTO/ COURTESY]

Kenyan Sportpesa shareholders Paul Wanderi Ndung’u and Asenath Wacera Maina have lost a combined Ksh1.1 billion in the recent realignment of the firm’s shares.

The two have been in a tussle with other shareholders over alleged money laundering between SportPesa Global Holdings Limited (SPGHL) and Pevans East Africa.

According to the latest information, Mrs Maina, the widow of the late Nairobi mayor Dick Wathika, now owns 1.9 percent of SGHL, down from 21 percent recorded in March 2017.

This is equivalent to £417,763 (Ksh62.6 million), a drop from £4.5 million (Ksh689.3 million). This means that Mrs Maina has recorded wealth erosion of £4.1 million (Ksh626 million)

SGHL’s total book value stood at £21.8 million (Ksh3.2 billion) in the year ended December 2018.

On the other hand, Mr Ndung’u’s stake has shrunk to £338,189 (Ksh50.7 million) from £3.7 million (Ksh558 million), resulting in a loss of £3.3 million (Ksh507.2 million).

Read: Sportpesa Co-founder Fingers CEO Ronald Karauri, Spills Beans On Boardroom Wars And ‘Stolen’ Funds

Other shareholders saw their stakes rise substantially after participating in a rights issue conducted between 2019 and 2020. Ndung’u and Mrs Maina refused to participate in the rights issue terming it as fraudulent.

For instance, Guerassim Nikolov paid Ksh55.7 million, which saw his net worth rise by Ksh453.2 million. The value of his stake rose from Ksh721.5 million to Ksh1.1 billion.

Ronald Karauri, the current Sportpesa CEO, paid Ksh15.1 million and gained Ksh91.9 million.

Sportpesa returned to the Kenyan market last year under the barner of Milestone Games Limited, abandoning its parent company, Pevans East Africa Ltd. Karauri owns 54.4 percent of Milestone Games Ltd.

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