Why would I pay more than 25billion for a company with a net worth of 7billion in a price controlled & low margin oil market??

Nock would be seriously overpaying....

well said!

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[quote=MoneyMonger]Here is the link for the star newspaper article

http://www.the-star.co.k...-billion-rival-oil-firm[/quote]
And KK sold the highest number of shares today.

[quote=mkonomtupu]It would seem the energy sector is where the rubber will meet the road for the jubilee govt. NOCK is being reshaped, Nyoike and his bureaucrats at MoE are leaving the scene, Kengen getting a new MD, Chirchir formally approved, oil production in 5 years. This is the sector in the next ten years where new tenderpreneurs will be created. You will either make your capital or lose your capital.
if you are gonna play the game son you gotta learn to play it right

http://www.nation.co.ke/.../-/4vpuofz/-/index.html[/quote] Sad to see Tenderpreneurs not Entrepreneurs will be made. I have started missing the 'hands-off' regime of Kibaki except for a few miscues including price controls used at NCPB, KPLC & fuel prices. And these happened when UK & WR were in charge of the relevant ministries.

Privatisation hasn't worked very well in the capital intensive energy sector... look at KenGen [now we have GDC] and KPLC [KETRACO].

if true, this is a commendable strategic move by GoK... and I have a few shares in KK so bias must be noted!

There is a memo.... Quote

Managing director Sumayya Athumani was unavailable for comment yesterday.

The memo argues that the purchase "will ensure that the Corporation has sufficient footprint to influence supply and prices."

"The petroleum supply crisis experienced on different occasions is testament to how the big oil marketers who have the biggest share of retail distributions assets can disrupt petroleum supply and cripple the country," states the memo.

In the memo, NOCK's finance manager Kamau Mugenda defends single sourcing Standard and Mutual, a local financial advisory firm based in Nairobi.

"Only a limited number of advisory companies can handle this size of transaction," states Kamau. KPMG was ruled out because it is NOCK's present external auditor and was "the transaction advisers for one of the companies that shown interest in acquiring the business of the said oil company".

"PWC has been a long term auditor of the said oil marketing company while Deloitte was adversely mentioned during the infamous Triton saga. Ernst and Young has not had a strong record of handling large transaction advisory assignments in Kenya," states the memo.

CFC Stanbic and CBA were dismissed because "being primarily banks... they may want to skew the transaction in favour of finance coming from them."

"It is National Oil's considered opinion that Standard and Mutual would be a more objective transaction adviser for this project," the memo concludes.

"The services are required urgently as National Oil has received a narrow engagement window with the vendors to discuss and conclude this transaction," the Finance Manager states.
End quote.

How do you reckon that KenGen & KPLC are private?

Looks like its Kk recoded. I need to add just a few more

Kenol = KENya Oil Ltd