Wazua
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KENOL/KOBIL
Rank: Chief Joined: 1/3/2007 Posts: 18,261 Location: Nairobi
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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youcan'tstopusnow wrote:nahdy wrote:http://www.nse.co.ke/newsite/pdf/YEAR%202011/Announcements/KenolKobil.pdf
eeh!!!! the guy is loaded.... He's in just in time for the ESOP  that's the first thing i thought. You should see the notice of cmc appointing a chairman, its hard to imagine that such a reputable company has such a lackluster letter. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 9/26/2006 Posts: 450 Location: CENTRAL PROVINCE
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@ VVS: You must have received the 2010 Kenol Kobil Ltd Annual Report and Financial Statements. What do you think of Page 35 - Employee Benefits (Share Options): KK has an options agreement with the CEO under which he is entitled to receive options for units amounting to 4% of the company's shares in respect of the financial years 2010-2014 to be issued on or about 1st May 2011.Also read page 52. J. Segman will receive about 71M of the newly created 300M ESOP shares. Positives:Another James Mwangi being created at KK (expect the KK CEO to utilise every opportunity to play up the share price). Serious motivation for the CEO to return above average performance. Happy Hunting
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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i knew it...this man JiS has just become a billionaire...i argue all shareholders going to the AGM to reject this Esop thing...
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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the deal wrote:i knew it...this man JiS has just become a billionaire...i argue all shareholders going to the AGM to reject this Esop thing... Why?
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Rank: Veteran Joined: 6/17/2009 Posts: 1,622
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If the vesting period is three years,and the units are priced at market value at the day they are granted so be it.The CEO and managerial staff will have to put in effort to improve company performance,see a higher share price in order to realize gains in their share options.
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Rank: Member Joined: 1/1/2010 Posts: 518 Location: kandara, Murang'a
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the deal wrote:i knew it...this man JiS has just become a billionaire...i argue all shareholders going to the AGM to reject this Esop thing... Can you be my proxy? Sitoki Kandara to just have water na biscuits Foresight..
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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David Ohana, on Easy FM currently. But he isn't going into details of what I wanted to hear, mainly doing PR and talking about the ksh 2/- discount.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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@forsport JIS is now chairman...CEO...Top 10 shareholder...even PRO...even JM at EB is not Chairman...this is so typical of the Mugabes of Africa
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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the deal wrote:@forsport JIS is now chairman...CEO...Top 10 shareholder...even PRO...even JM at EB is not Chairman...this is so typical of the Mugabes of Africa @ the deal bear with me. genuine question - does this adversely affect my position; or will my fortune rise with his?
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Rank: Chief Joined: 1/3/2007 Posts: 18,261 Location: Nairobi
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stocksmaster wrote:@ VVS: You must have received the 2010 Kenol Kobil Ltd Annual Report and Financial Statements. What do you think of Page 35 - Employee Benefits (Share Options): KK has an options agreement with the CEO under which he is entitled to receive options for units amounting to 4% of the company's shares in respect of the financial years 2010-2014 to be issued on or about 1st May 2011.Also read page 52. J. Segman will receive about 71M of the newly created 300M ESOP shares. Positives:Another James Mwangi being created at KK (expect the KK CEO to utilise every opportunity to play up the share price). Serious motivation for the CEO to return above average performance. Happy Hunting Yes, I am digesting it. I would like more info esp on the vesting but I agree with you! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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@Forsport power corrupts...Mugabe started out as a good guy...today he is a villain...all i'm saying is in terms of governance the Esop is not good for KK...JIS is brilliant but wat if looses his way KK will go down with him.
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Rank: Member Joined: 9/26/2006 Posts: 450 Location: CENTRAL PROVINCE
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For Sport wrote:the deal wrote:@forsport JIS is now chairman...CEO...Top 10 shareholder...even PRO...even JM at EB is not Chairman...this is so typical of the Mugabes of Africa @ the deal bear with me. genuine question - does this adversely affect my position; or will my fortune rise with his? @ For Sport: Short term - You are facing about 10%dilution (it should be about 17% dilution but you have to factor in that via the ESOP, the employees get the shares at about 50-60% of prevailing price). Long term:The ESOP will act as a motivator for the employees to return above average performance since they will be major stakeholders in the business. Thus, if buying KK for short term (less than 1yr), it would be prudent not to buy coz of the dilution. However, if you can wait until 2014 when Segman will have received all his 71M KK shares, the share price should be hovering in the 30-40 range with an EPS in the range of Ksh 3.5 - 4.0. Happy hunting.
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Rank: Chief Joined: 1/3/2007 Posts: 18,261 Location: Nairobi
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@stocksmaster - I am not sure what the exercise price for the options is but 60% of current price would be very cheap! I think it might be in term of 'options' that they can exercise i.e. whether the price is 10 or 15 or 20 in future years the ESOP will buy them at 9.70... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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VituVingiSana wrote:I think it might be in term of 'options' that they can exercise i.e. whether the price is 10 or 15 or 20 in future years the ESOP will buy them at 9.70... And why would one buy them currently and get locked in for years while he/she can buy off the market? I think @stocksmaster is right, they have to subsidize for employees. I personally don't see the ESOP as a threat, I think it's great, employees will take ownership knowing that their share value is directly proportional to their input.
BBI will solve it :)
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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the deal wrote:@Forsport power corrupts...Mugabe started out as a good guy...today he is a villain...all i'm saying is in terms of governance the Esop is not good for KK...JIS is brilliant but wat if looses his way KK will go down with him. True but i dont think he'd do anything to jeopardize his stake in the company. I wouldnt mind an MD with something to lose if things go wrong.
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Rank: Chief Joined: 1/3/2007 Posts: 18,261 Location: Nairobi
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2012 wrote:VituVingiSana wrote:I think it might be in term of 'options' that they can exercise i.e. whether the price is 10 or 15 or 20 in future years the ESOP will buy them at 9.70... And why would one buy them currently and get locked in for years while he/she can buy off the market? I think @stocksmaster is right, they have to subsidize for employees. I personally don't see the ESOP as a threat, I think it's great, employees will take ownership knowing that their share value is directly proportional to their input. @2012 - Erm, do you know what Call Options are? If not, please read up on them. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 6/17/2009 Posts: 1,622
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I agree with @vvs,the pricing cant be at such a huge discount,it would beat the purpose of the whole ESOP thing.The average price of the share over the last six months is more realistic.
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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The creation of new shares is a bit confusing 300M shares is for the ESOP[why didn't they just buy them straight from the bourse?] what abt the 200M share what do they intend to do with them[Future right issue or bonus shares? what else can they do with this extra shares] '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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