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Ndegwa family to raise NIC stake from 25% to 35% after under subscription
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Obi 1 Kanobi
#21 Posted : Tuesday, September 18, 2012 1:33:59 PM
Rank: Elder

Joined: 7/23/2008
Posts: 3,017
VituVingiSana wrote:
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.


Why would they want to publicly own more than 25%. There is no motivation to hold an additional 10% for one year. This is simply an exercise whose aim is to ensure the bank has a certain decired core capital that supports growth going forward.

They are not speculators, they are more interested in the bank than in the shares.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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sparkly
#22 Posted : Tuesday, September 18, 2012 2:33:17 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Taking up their rights is not unfair. Totally within their right to take up the rights and participate in the pro-rata allocation of the untaken rights.

There is no need for them however to take an extra allocation, knowing that the offer will be oversubscribed.

What is unfair is the fact that the Ndegwas will draw their rights cheque AFTER the determination of the subscription levels and the Board has an unfair advantage of determining the allocation criteria.

For instance if i have 1,000 shares i get 250 rights. I decide to take up the rights and apply for an extra 250 shares. My payment accompanies the application and i have to wait for the allocations.

Ndegwas take up their rights and apply for 10 times their entitlement (just an example). They provide a bank guarantee. They determine the allocation criteria, get themselves a pro-rata allocation based on their large application!

If i was CBK i would not allow them to exceed 25% while Wanjikus are allocated shares in batches of 10s and 20s. The fairest system would be to give people who apply for less than say 2,000 additional shares a full allocation and pro-rata thereafter.

Life is short. Live passionately.
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gesowan
#23 Posted : Tuesday, September 18, 2012 2:46:12 PM
Rank: Member

Joined: 11/6/2010
Posts: 289
so the Ndegwas have already paid for their rights,i doubt,other shareholders have already paid,my take let the wanjikus get their full allocation since we r headed for an over subscription.

these guys will make a kill sell by 2013 when the share will be trading at ksh 56 imagine the capital gain.

truly said....Githae do something
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VituVingiSana
#24 Posted : Tuesday, September 18, 2012 3:06:25 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
sparkly wrote:
Taking up their rights is not unfair. Totally within their right to take up the rights and participate in the pro-rata allocation of the untaken rights.

There is no need for them however to take an extra allocation, knowing that the offer will be oversubscribed.

What is unfair is the fact that the Ndegwas will draw their rights cheque AFTER the determination of the subscription levels and the Board has an unfair advantage of determining the allocation criteria.

For instance if i have 1,000 shares i get 250 rights. I decide to take up the rights and apply for an extra 250 shares. My payment accompanies the application and i have to wait for the allocations.

Ndegwas take up their rights and apply for 10 times their entitlement (just an example). They provide a bank guarantee. They determine the allocation criteria, get themselves a pro-rata allocation based on their large application!

If i was CBK i would not allow them to exceed 25% while Wanjikus are allocated shares in batches of 10s and 20s. The fairest system would be to give people who apply for less than say 2,000 additional shares a full allocation and pro-rata thereafter.
BTW, read the IM, they do not even need a Bank Guarantee! All they need is a Letter of Undertaking which is 'free' (no fees unlike a Bank Guarantee) for QIIs & ICEA is considered a QII. As you said, what stops them from applying for Additional Shares after all the other applications are in & their form is backdated
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Tuesday, September 18, 2012 3:13 PM | Reason: Not specified
guru267
#25 Posted : Tuesday, September 18, 2012 9:13:01 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
gesowan wrote:
these guys will make a kill sell by 2013 when the share will be trading at ksh 56 imagine the capital gain.

truly said....Githae do something


Instead of crying about it! Call your broker and join the party...

These guys might get an additional 10% @ 21bob and at the same time securing the 2billion capital for their company's expansion! Capitalism at work! Applause
Mark 12:29
Deuteronomy 4:16
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gesowan
#26 Posted : Tuesday, September 18, 2012 11:48:17 PM
Rank: Member

Joined: 11/6/2010
Posts: 289
when Guru speaks we listen
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murchr
#27 Posted : Wednesday, September 19, 2012 5:43:35 AM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
guru267 wrote:
gesowan wrote:
these guys will make a kill sell by 2013 when the share will be trading at ksh 56 imagine the capital gain.

truly said....Githae do something


Instead of crying about it! Call your broker and join the party...

These guys might get an additional 10% @ 21bob and at the same time securing the 2billion capital for their company's expansion! Capitalism at work! Applause


Ditto....I wonder why people keep wailing instead of joining the sisal dance.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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sparkly
#28 Posted : Wednesday, September 19, 2012 6:40:01 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
murchr wrote:
guru267 wrote:
gesowan wrote:
these guys will make a kill sell by 2013 when the share will be trading at ksh 56 imagine the capital gain.

truly said....Githae do something


Instead of crying about it! Call your broker and join the party...

These guys might get an additional 10% @ 21bob and at the same time securing the 2billion capital for their company's expansion! Capitalism at work! Applause


Ditto....I wonder why people keep wailing instead of joining the sisal dance.


Two reasons why we will discuss it:

1. Its a listed company so all shareholders should have a say or at least bit** if things aren't right in their eyes.
2. Its a bank and therefore a PIE, public interest entity and the reason why the CBK guidelines apply to the Ndegwas.

I have no problem as long as the allocation criteria will be 'fair' to the minorities before they engage in their little adventure of exceeding 25%.
Life is short. Live passionately.
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2012
#29 Posted : Wednesday, September 19, 2012 9:00:16 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
sparkly wrote:
murchr wrote:
guru267 wrote:
gesowan wrote:
these guys will make a kill sell by 2013 when the share will be trading at ksh 56 imagine the capital gain.

truly said....Githae do something


Instead of crying about it! Call your broker and join the party...

These guys might get an additional 10% @ 21bob and at the same time securing the 2billion capital for their company's expansion! Capitalism at work! Applause


Ditto....I wonder why people keep wailing instead of joining the sisal dance.


Two reasons why we will discuss it:

1. Its a listed company so all shareholders should have a say or at least bit** if things aren't right in their eyes.
2. Its a bank and therefore a PIE, public interest entity and the reason why the CBK guidelines apply to the Ndegwas.

I have no problem as long as the allocation criteria will be 'fair' to the minorities before they engage in their little adventure of exceeding 25%.



This issue will be over subscribed so I doubt this Ndegwa issue will arise.

BBI will solve it :)
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  | | Edit by user: Wednesday, September 19, 2012 9:07 AM | Reason: Not specified
VituVingiSana
#30 Posted : Wednesday, September 19, 2012 9:11:06 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
2012 wrote:
sparkly wrote:
murchr wrote:
guru267 wrote:
gesowan wrote:
these guys will make a kill sell by 2013 when the share will be trading at ksh 56 imagine the capital gain.

truly said....Githae do something


Instead of crying about it! Call your broker and join the party...

These guys might get an additional 10% @ 21bob and at the same time securing the 2billion capital for their company's expansion! Capitalism at work! Applause


Ditto....I wonder why people keep wailing instead of joining the sisal dance.


Two reasons why we will discuss it:

1. Its a listed company so all shareholders should have a say or at least bit** if things aren't right in their eyes.
2. Its a bank and therefore a PIE, public interest entity and the reason why the CBK guidelines apply to the Ndegwas.

I have no problem as long as the allocation criteria will be 'fair' to the minorities before they engage in their little adventure of exceeding 25%.


This issue will be over subscribed so I doubt the issue will arise.
The 2007 Rights Issue was oversubscribed yet miraculously the ndegwas went from 25% to 28% thanks to an 'never seen before' allocation policy. The allocation policy - which was announced AFTER the allocation was a fait accompli - was rigged in favor of the ndegwas.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Wednesday, September 19, 2012 9:25 AM | Reason: Not specified
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