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Ndegwa family to raise NIC stake from 25% to 35% after under subscription
Rank: Member Joined: 11/6/2010 Posts: 289
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Finance Minister Njeru Githae has allowed the Ndegwa family to own upto a maximum of 35 per cent of NIC Bank—which is above the set limit of 25 per cent.
this is unfair , i mean is it that there is an under subscription???
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Rank: Member Joined: 11/6/2010 Posts: 289
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gesowan wrote:Finance Minister Njeru Githae has allowed the Ndegwa family to own upto a maximum of 35 per cent of NIC Bank—which is above the set limit of 25 per cent.
this is unfair , i mean is it that there is an under subscription http://www.businessdaily...060/-/vtrye/-/index.html
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Rank: Member Joined: 4/25/2012 Posts: 110
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gesowan wrote:[quote=gesowan]Finance Minister Njeru Githae has allowed the Ndegwa family to own upto a maximum of 35 per cent of NIC Bank—which is above the set limit of 25 per cent.
this is unfair , i mean is it that there is an under subscription http://www.businessdaily...60/-/vtrye/-/index.html[/quote] This is fair. It is about taking precaution in case of under-subscription that could make the family hold more that 25% of the share capital. The report goes on to say "Mr Githae in a Kenya Gazette notice said the Ndegwa family has till June 2013 to sell any shares above the 25 per cent threshold through the Nairobi Securities Exchange (NSE)." There is nothing as dangerous as an Idea, when there is only one Idea
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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What are you mopping on about. Haven't you had of the phrase Kenya ina wenyewe? Stop whining and create your own corner of Kenya and thus join the ranks of wenye Kenia.
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Rank: Member Joined: 4/25/2012 Posts: 110
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“Indicative numbers point to an oversubscription,” said NIC Capital general manager Wilson Nyakera. http://www.businessdaily...28/-/swvrb5/-/index.htmlThere is nothing as dangerous as an Idea, when there is only one Idea
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Rank: Member Joined: 11/6/2010 Posts: 289
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i mean they should not take their rights ,unless there is an unders subscription, this thing will have an over subscription
and Wazua is the best and trust me even NIC shareholders and stake holders read it
Githae should defend the minority shareholders
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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It might look unfair but i guess they are guarding themselves against undersubscription. They will only buy if investors dont take up thier rights. Thieves
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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King G wrote:It might look unfair but i guess they are guarding themselves against undersubscription. They will only buy if investors dont take up thier rights. I would not put it past them to get allocated more by the Board [which they control] so as to sell later at a higher price. This is what they did in 2007. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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I think take up percentage of rights under entitlement is unlikely to hit 75%. The board will proceed and adopt allotment policy for additional shares that is same for all shareholders. Nonetheless, this will benefit the ndegwas who i think have hugely applied for additional shares
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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mwekez@ji wrote:I think take up percentage of rights under entitlement is unlikely to hit 75%. The board will proceed and adopt allotment policy for additional shares that is same for all shareholders. Nonetheless, this will benefit the ndegwas who i think have hugely applied for additional shares That would seem a position they have maneuvered themselves into by virtue of knowing the level of applications. It seems a deliberate ploy to increase their % beyond 25% claiming 'under-subscription' yet I am sure NIC will attract a total subscription (excluding Ndegwas) of 100%. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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There's no way these rights will be under-subscribed.
BBI will solve it :)
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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It seems to me that this move is the beginning of a slow but deliberate move/campaign by the ndegwas to get additional shares DESPITE an over-subscription. Will the CMA stop it? In 2007, NIC gave a preferred allocation to the ndegwas who then profited by selling the 'New Shares' on the NSE. Read the IM. The Board (which is controlled by the ndegwas) will allocate the Untaken Rights as they see fit. There is no indication on how the shares will be allocated! 100% discretion of the Board. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:mwekez@ji wrote:I think take up percentage of rights under entitlement is unlikely to hit 75%. The board will proceed and adopt allotment policy for additional shares that is same for all shareholders. Nonetheless, this will benefit the ndegwas who i think have hugely applied for additional shares That would seem a position they have maneuvered themselves into by virtue of knowing the level of applications. It seems a deliberate ploy to increase their % beyond 25% claiming 'under-subscription' yet I am sure NIC will attract a total subscription (excluding Ndegwas) of 100%. During the recent DTB rights issue, take up percentage under entitlement stood at 74.6%. I dont see NIC surpassing that. There are some chaps who'll not exercise their rights for whatever reasons. Those who have applied for additional rights benefit, on a pro-rata basis, i trust
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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@ all, i withdraw my earlier comments. I have seen the way they are going to manupulate the allocation process. Since they are in the monies, they have applied for a big chunk of extra allocation and they already know 2 things which we dont know; 1. Level of apllications (%age oversubscription). 2. Allocation creteria. All this favour them - this world is a man eat man society. There goes my dream allocation and comes my refund cheque - i would have made dtter investments. Who will stop this madness where the monied keep on crewing us in the name of rights, ipo, takeovers etc. Githae is in this full throttle!, CMA is toothless and NSE has no control over it.  Thieves
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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@ mwekezaji, it is the pro rata that they are abusing, manupulating and gaining from. Thieves
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:I think take up percentage of rights under entitlement is unlikely to hit 75%. The board will proceed and adopt allotment policy for additional shares that is same for all shareholders. Nonetheless, this will benefit the ndegwas who i think have hugely applied for additional shares That would seem a position they have maneuvered themselves into by virtue of knowing the level of applications. It seems a deliberate ploy to increase their % beyond 25% claiming 'under-subscription' yet I am sure NIC will attract a total subscription (excluding Ndegwas) of 100%. During the recent DTB rights issue, take up percentage under entitlement stood at 74.6%. I dont see NIC surpassing that. There are some chaps who'll not exercise their rights for whatever reasons. Those who have applied for additional rights benefit, on a pro-rata basis, i trust Trust  Read the IM. See what they did in 2007 despite an over-subscription the ndegwas increased their stake from 25% to 28%. Remember the Aga Khan folks are pretty decent folks re: Minority Shareholders. Not all. The "Allocation Criteria" is a mystery to be solved by the Board. Who controls the Board? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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King G wrote:@ all, i withdraw my earlier comments. I have seen the way they are going to manupulate the allocation process. Since they are in the monies, they have applied for a big chunk of extra allocation and they already know 2 things which we dont know; 1. Level of apllications (%age oversubscription). 2. Allocation criteria.All this favour them - this world is a man eat man society. There goes my dream allocation and comes my refund cheque - i would have made dtter investments. Who will stop this madness where the monied keep on crewing us in the name of rights, ipo, takeovers etc. Githae is in this full throttle!, CMA is toothless and NSE has no control over it. Who determines the Allocation Criteria? The Board Who is the chairman of the Board? A Ndegwa Who is the largest shareholder & controls the Board? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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King G wrote:Who will stop this madness where the monied keep on crewing us in the name of rights, ipo, takeovers etc. and who screwed you?? These guys just want to ensure that they raise all the money needed for the company they founded... If they make money in the process.. its their gain! Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 7/17/2008 Posts: 152
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I don't see how this is unfair and to who.
If all shareholders apply for their rights they shall get them because they are entitled.
If some don't apply, it would be for the good of the company if someone else takes the shares. If that someone else happens to be the ndegwa family, it will be a sign of the confidence they have in the company.
The board can only come up with a criteria of allocating the rights not taken to those who applied for more e.g 40%. There is no way the board can randomly say give so and so this number of shares and forget about this family, No. It must be a criteria that will be applied fairly.
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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luxel wrote:I don't see how this is unfair and to who.
If all shareholders apply for their rights they shall get them because they are entitled.
If some don't apply, it would be for the good of the company if someone else takes the shares. If that someone else happens to be the ndegwa family, it will be a sign of the confidence they have in the company.
The board can only come up with a criteria of allocating the rights not taken to those who applied for more e.g 40%. There is no way the board can randomly say give so and so this number of shares and forget about this family, No. It must be a criteria that will be applied fairly. Well, then let the Board gives us the criteria BEFORE the allocation! WHAT IS THE ALLOCATION POLICY? Can you tell me that? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ndegwa family to raise NIC stake from 25% to 35% after under subscription
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