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Family Bank is the Sh30 Price Tag Justifiable?
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Hunderwear wrote:[quote=the deal]Family Bank is a Kenyan Lender which initially started out as a building society in 1984, Family Bank was converted into a fully-fledged commercial bank on 1st May 2007 and today boosts an asset base of more than Sh20 Billion, has more than 600,000 customer’s, an over Sh11 Billion loan book, 63 branches country wide and over 1000 employees. Family Bank plans to list by way of introduction on 31st of October 2011 on the financial segment of the Nairobi Stock Exchange (NSE), the company is more likely to list at an introductory price of Sh30 valuing the bank at Sh7.3 Billion, the stock currently has 242 Million shares. AfricInvest a Mauritius based private equity (PE) firm bought a 25% stake in Family bank worth Sh1.2 Billion, implying that the private equity firm paid Sh19.8 a share to get the 60.5 Million shares which are equivalent to 25% of Family Bank. Read more http://www.contrarianinv...rehensive-analysis.html[/quote] >interestingly Africinvst paid only 2 bob per share for their 54 mil shares! Sh2 how? according to media reports AfricInvest paid Sh1.2Billion for the stake 
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Rank: Member Joined: 4/14/2011 Posts: 639
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the deal wrote:Hunderwear wrote:[quote=the deal]Family Bank is a Kenyan Lender which initially started out as a building society in 1984, Family Bank was converted into a fully-fledged commercial bank on 1st May 2007 and today boosts an asset base of more than Sh20 Billion, has more than 600,000 customer’s, an over Sh11 Billion loan book, 63 branches country wide and over 1000 employees. Family Bank plans to list by way of introduction on 31st of October 2011 on the financial segment of the Nairobi Stock Exchange (NSE), the company is more likely to list at an introductory price of Sh30 valuing the bank at Sh7.3 Billion, the stock currently has 242 Million shares. AfricInvest a Mauritius based private equity (PE) firm bought a 25% stake in Family bank worth Sh1.2 Billion, implying that the private equity firm paid Sh19.8 a share to get the 60.5 Million shares which are equivalent to 25% of Family Bank. Read more http://www.contrarianinv...rehensive-analysis.html[/quote] >interestingly Africinvst paid only 2 bob per share for their 54 mil shares! Sh2 how? according to media reports AfricInvest paid Sh1.2Billion for the stake I quote from annual report page 47'Durinp th year,a consortium of foreign investors namely Afrcinvest,Norfund and FMO purchased a total of 54mil shares worth 108 minn...'This is unbelievabl and realy hope am wrong.
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Rank: New-farer Joined: 7/6/2010 Posts: 25
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@ Hunderwear, that meant 54m shares at a par value of Sh 2/= each and therefore total per value of sh 108m. The market price was different and if i recall, they bought at sh 17/= per share. During the private placement, the shares were selling at sh 22/=
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Rank: Member Joined: 4/14/2011 Posts: 639
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Lek wrote:@ Hunderwear, that meant 54m shares at a par value of Sh 2/= each and therefore total per value of sh 108m. The market price was different and if i recall, they bought at sh 17/= per share. During the private placement, the shares were selling at sh 22/= I really hope so.its also tricky to confirm on the share premium ac. as other shares were sold in the year.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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FUNKY wrote:http://www.nation.co.ke/business/news/Family+Bank+lays+off+48+in+reform+drive+/-/1006/1235126/-/14wth6i/-/index.html Lets hope he is hiring competent people not his former buddies at KCB!
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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According to the BDA http://bit.ly/pcwlC5, Keriri has been let go? I doubt that v much. A lot of ex-KCB being brought on board i.e. bringing with them bureaucratic mentality that seems to pervade KCB Sehemu ndio nyumba
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Rank: Member Joined: 4/14/2011 Posts: 639
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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acquisition is a good approach as one gets to a market and gets the other bank that already has a customer base making it an easy entry. African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Sober wrote:acquisition is a good approach as one gets to a market and gets the other bank that already has a customer base making it an easy entry. Acquisitions can also have their drawbacks. See Equity Uganda. Management had sleepless nights GOD BLESS YOUR LIFE
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Rank: Member Joined: 4/14/2011 Posts: 639
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youcan'tstopusnow wrote:Sober wrote:acquisition is a good approach as one gets to a market and gets the other bank that already has a customer base making it an easy entry. Acquisitions can also have their drawbacks. See Equity Uganda. Management had sleepless nights >whats happening with eq uganda?thought t already turned around.
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Why loudly announce that you are looking to do an acquisition in a country with only 5/6 banks? Won't they be waiting for you like hungry lions? Sehemu ndio nyumba
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Hunderwear wrote:youcan'tstopusnow wrote:Sober wrote:acquisition is a good approach as one gets to a market and gets the other bank that already has a customer base making it an easy entry. Acquisitions can also have their drawbacks. See Equity Uganda. Management had sleepless nights >whats happening with eq uganda?thought t already turned around. I said 'had sleepless nights' i.e. before it turned around. They had to do a complete overhaul. As for now, it's doing great GOD BLESS YOUR LIFE
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Mainat wrote:Why loudly announce that you are looking to do an acquisition in a country with only 5/6 banks? Won't they be waiting for you like hungry lions? To push up the OTC price of course. So that they pull off a Tranny GOD BLESS YOUR LIFE
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Rank: Elder Joined: 7/21/2010 Posts: 6,192 Location: nairobi
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This 'k' ipo's.,i think i will only buy into a central bank ipo if it can ever happen but not any other bank at the moment. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 4/14/2011 Posts: 639
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youcan'tstopusnow wrote:Mainat wrote:Why loudly announce that you are looking to do an acquisition in a country with only 5/6 banks? Won't they be waiting for you like hungry lions? To push up the OTC price of course. So that they pull off a Tranny >Price already at 35-36 OTC
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Hunderwear wrote:youcan'tstopusnow wrote:Mainat wrote:Why loudly announce that you are looking to do an acquisition in a country with only 5/6 banks? Won't they be waiting for you like hungry lions? To push up the OTC price of course. So that they pull off a Tranny >Price already at 35-36 OTC It's working then  GOD BLESS YOUR LIFE
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Mainat wrote:Why loudly announce that you are looking to do an acquisition in a country with only 5/6 banks? Won't they be waiting for you like hungry lions? Vitisho men.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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mlennyma wrote:This 'k' ipo's.,i think i will only buy into a central bank ipo if it can ever happen but not any other bank at the moment. U can invest in the S.A.Reserve Bank on the JSE.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Was this not the bank hawking around loans for the Britak IPO?
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