Safaricom shares up 14% since Michael Joseph dumped the stock

Peter Ndegwa, the incoming Safaricom CEO.

Michael Joseph, the acting chief executive officer of Safaricom (SCOM), no longer owns any shares in the company. Joseph owned about 1.2 million Safaricom shares at the end of the company’s 2018 financial year – the period ended March 2018. He proceeded to sell all that stake in the course of the 2019 financial year, which ended in March 2019. The executive disclosed the transaction to Business Daily, which reported about it last Friday.

Safaricom stock fell 1.56% on Friday to close at Ksh31.50 following the report that the acting CEO has sold all his shares in the company. However, Safaricom shares have gained 14.3% since the end of March 2019, the time Joseph dumped the stock. Joseph claims he sold his entire stake in Safaricom to fund the construction of his retirement home. He is 73.

Joseph was Safaricom’s founding CEO, leading the company to its IPO in 2008. He ran the company until 2010 when he passed on the leadership to Bob Collymore. Joseph returned to lead Safaricom again last July following the dead of Collymore.

Safaricom announced in October that it had picked Peter Ndegwa as its new chief executive. Ndegwa will join Safaricom from Diageo PLC, a global beer company. Joseph will step down in April to pave way to Ndegwa.

Safaricom shares have gained 11.9% since July 2 when it appointed Joseph as acting CEO. The stock is up more than 10% since October 24 when Safaricom unveiled Ndegwa as its next CEO.