@the deal, sales turnover, sales volumes & cash at the end of 2012 were down 13%, 21% and 33% respectively. The increase in cashflow from operations was because they sold most of the stocks they were holding consequently reducing the stock holding to KES 8.9 from KES 24B. KK is going through a desperate time and is seeking desperate measures as pointed by @mlennyma

@ mlennyma: It is the nature of capitalism (An economic system based on a free market, open competition, profit motive and private ownership of the means of production.)

The investors at the nse have smelt an opportunity to buy the kk share at a song helped by the disastrous 2012 financial year results. It is perfectly legal but not necessary moral to scare the weak hands into offloading at panic prices (Ksh 5).

Having said that, after analyzing the financial results of KK, i was shocked that almost 90% of its retained earnings accumulated over almost a decade were wipped out in this one financial year!! This may mean that for the next 3-4 years, the company has to painstakingly recreate those retained earnings hence a depressed dividend payment policy going forward.

I will only therefore consider it at a sub Ksh 5 price.

Happy hunting.

If I was a strategic investor I would be buying in bucket loads now and apply for takeover when I reach threshold

No wonder Puma withdrew their bid