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I&M Bank to List at NSE via City Trust.
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mwekez@ji
#21 Posted : Thursday, December 27, 2012 11:27:54 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
@VVS, et al. Who are the current directors of City Trust? And why is mr. market valuing City Trust this expensively? Wouldn’t mind the latest annual report
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sparkly
#22 Posted : Thursday, December 27, 2012 12:26:55 PM
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Posts: 8,083
Location: Enk are Nyirobi
mwekez@ji wrote:
I&M Bank offered shares to ESOP in year 2011 at KES 935 per share. (EPS KES 117.72, NBV KES 507.48, P/E 7.94X, P/B 1.84X). City Trust aint getting the shares any cheaper than that.

City Trust shares are going for KES 390 (EPS KES 8.45, NBV KES 62.86, P/E 46.15X, P/B 6.20X). I doubt whether I&M will getting City Trust shares at such an expensive level.


I am guesing a simple swap.

City Trust will create new shares which will be offered to the current shareholders of I&M prorata their shareholding in I&M.

The current shareholders of I&M will surrender all their shares to City Trust.

The new shares will then be listed on the nse.

If that will be the case, the current shareholders of City Trust need to watch out. Its unlikely that the stock of CT will be allocated the lofty valuation implied by the nse.
Life is short. Live passionately.
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the deal
#23 Posted : Thursday, December 27, 2012 4:06:20 PM
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Joined: 9/25/2009
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Location: Windhoek/Nairobbery
The City Trust shares will be split before the swap then City shareholders get to keep their equivalent of their current stake in I&M Bank in the new holdings company. I&M Bank is a fast growing regional bank...I think City is cheap at the current price.

Disclaimer: My two cents.
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VituVingiSana
#24 Posted : Thursday, December 27, 2012 5:53:00 PM
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Joined: 1/3/2007
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Location: Nairobi
mwekez@ji wrote:
@VVS, et al. Who are the current directors of City Trust? And why is mr. market valuing City Trust this expensively? Wouldn’t mind the latest annual report

Chairman: Anil Raja
M. Soundarajan, D. Ndonye, P. Raja
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#25 Posted : Thursday, December 27, 2012 5:57:04 PM
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the deal wrote:
The City Trust shares will be split before the swap then City shareholders get to keep their equivalent of their current stake in I&M Bank in the new holdings company. I&M Bank is a fast growing regional bank...I think City is cheap at the current price.

Disclaimer: My two cents.
The notice said the Documents will be released on 21st Jan 2013. There might be an element of 'splitting' included prior to the 'acquisition'. I would hazard a guess between 4 to 10 so an implied price of 100 (close to its peer DTB) to 40 (close to its peer NIC). BTW, employees were allocated shares in IM& Bank [always good to have employees as shareholders] and DEG/Proparco are among the larger shareholders.

Since the dominant party will be I&M Bank (I&M Bank Kenya, I&M Bank Tanzania), I assume the name of City Trust will eventually be changed to I&M Holdings or something of the sort. See EA Oxygen to BOC, Brooke Bond to Unilever, etc.

If you go to I&M Bank's website, there are other 'group' companies which may become part of the Holding Company in the future e.g. GA Insurance.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mwekez@ji
#26 Posted : Friday, December 28, 2012 8:50:46 AM
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Joined: 5/31/2011
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the deal wrote:
...I think City is cheap at the current price.


Substantiate putting in mind that City should henceforth be valued like a Bank #the deal contrarian thought

.
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sparkly
#27 Posted : Friday, December 28, 2012 8:58:55 AM
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Posts: 8,083
Location: Enk are Nyirobi
mwekez@ji wrote:
the deal wrote:
...I think City is cheap at the current price.


Substantiate putting in mind that City should henceforth be valued like a Bank #the deal contrarian thought

.


Ditto, the stock will be put on the weighing machine that is the nse after the re-organisation.
Life is short. Live passionately.
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VituVingiSana
#28 Posted : Friday, December 28, 2012 9:38:12 AM
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Joined: 1/3/2007
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Location: Nairobi
sparkly wrote:
mwekez@ji wrote:
the deal wrote:
...I think City is cheap at the current price.

Substantiate putting in mind that City should henceforth be valued like a Bank #the deal contrarian thought .

Ditto, the stock will be put on the weighing machine that is the nse after the re-organisation.

Probably after the elections. The documents will be sent on 21st Jan, then 3-4 weeks for City Trust's EGM, the (final) approval from CMA/CBK can take 2 weeks, then I&M shareholders have to 'approve' it at an EGM/AGM. Finally, the actual 'exchange' takes place before the 'listing' of the new shares.
By that time, the final 2012 results will be out, elections may be over & (hopefully) folks come back into the market.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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sparkly
#29 Posted : Friday, December 28, 2012 10:40:03 AM
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Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
mwekez@ji wrote:
@VVS, et al. Who are the current directors of City Trust? And why is mr. market valuing City Trust this expensively? Wouldn’t mind the latest annual report


financials oct 2012
Life is short. Live passionately.
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mwekez@ji
#30 Posted : Friday, December 28, 2012 12:30:45 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
sparkly wrote:
mwekez@ji wrote:
@VVS, et al. Who are the current directors of City Trust? And why is mr. market valuing City Trust this expensively? Wouldn’t mind the latest annual report


financials oct 2012


Financial_statement Noted. Annual_report (latest - for the FY Ending July 2012) still needed. Like this one >>> City Trust Annual Report for the FY Ending July 2006
.
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  | | Edit by user: Friday, December 28, 2012 12:38 PM | Reason: Not specified
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