Aguytrying wrote:im surprised by outre mer decision to redeem so early. i may reason that now that the company is getting back to profits, it can start repaying the shares(cash).
this will lead to increase in liabilities and decrease in profits. meaning nav and eps taking a hit.
however since the company was making losses before And is now starting to make profits, the eps will "rise".
im still wondering what to do with my shares
@Aguy, am equally surprised by this decision. Its only mid last year that the biggest chunk of the preference shares were issued.
And I wonder where the money to redeem the preference shares will come from. Notice the preference shares amount to KES 9B while TK market cap amounts to KES 3B so rights issue is not a feasible option.
>Will TK go for expensive loans/bonds to repay the preference shares?
>Will TK swap the preference shares for ordinary shares?
>How soon is the soon that this transaction is likely to happen?
... Very many questions coming up on this transaction