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AccessKenya takeover offer at 14/=
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King G
#191 Posted : Tuesday, July 16, 2013 9:21:18 AM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
There is a good number who bought above 21bob upto about 35bob. I hope shareholders will hold on to negotiate for a better price.

What will be the impact on the balance sheet on costs already incured while processing this transcation and the $2.5M to be paid to DD if the transcation fails.
Thieves
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kollabo
#192 Posted : Tuesday, July 16, 2013 10:31:19 AM
Rank: Veteran

Joined: 2/3/2012
Posts: 1,317
King G wrote:
There is a good number who bought above 21bob upto about 35bob. I hope shareholders will hold on to negotiate for a better price.

What will be the impact on the balance sheet on costs already incured while processing this transcation and the $2.5M to be paid to DD if the transcation fails.


Ati what? You mean the Directors even agreed to such a clause?d'oh!
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Jamani
#193 Posted : Tuesday, July 16, 2013 10:45:54 AM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
I understand it differently.... Read the standstill clause for yourself.

a) Dimension Data has entered into a standstill agreement with AccessKenya where it has committed to carry on the business in its ordinary course and not to undertake any actions which may have the impact of negatively affecting the value of the Company for the duration of the Takeover Offer. In addition in the event that a higher competing take-over offer is made to acquire AccessKenya and such offer becomes or is declared unconditional AccessKenya will be obliged to pay Dimension Data a break fee of USD 2,500,000; and

b) No payment or other benefit is proposed to be made or to be given to any director of AccessKenya or of any other company related to it as consideration, or in connection with, their retirement from office by Dimension Data or any company or any person associated or acting in concert with it
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  | | Edit by user: Tuesday, July 16, 2013 10:50 AM | Reason: Not specified
VituVingiSana
#194 Posted : Tuesday, July 16, 2013 11:30:04 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
The 'break-up' fee is OK. It means AK can entertain offers for 15 or better. The $2.5mn equates to 1/- per share. DD & all the hoops for a takeover are not free. If AK gets 15 (or better) then DD gets 1/- while AK gets a little more net of the break-up fee
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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King G
#195 Posted : Tuesday, July 16, 2013 11:39:52 AM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
Asanteni kwa interpretation .... Learning point. smile
Thieves
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smitha
#196 Posted : Tuesday, July 16, 2013 2:41:07 PM
Rank: New-farer

Joined: 6/10/2013
Posts: 52
The break up fee agreement is illegal as it is designed to prevent a competing offer to be made. The $2.5M is payable by the company to DD, thus eroding shareholder value. It is also contrary to S. 56 of the Companies Act which prevents a company from providing financial assistance in connection with the purchase of its shares, which is what the break up fee is all about i.e. payment by Access to compensate DD in its quest to purchase Access shares.
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youcan'tstopusnow
#197 Posted : Tuesday, July 16, 2013 3:32:35 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
smitha wrote:
The break up fee agreement is illegal as it is designed to prevent a competing offer to be made. The $2.5M is payable by the company to DD, thus eroding shareholder value. It is also contrary to S. 56 of the Companies Act which prevents a company from providing financial assistance in connection with the purchase of its shares, which is what the break up fee is all about i.e. payment by Access to compensate DD in its quest to purchase Access shares.



Hmmm... If true, maybe Jamani should contact his lawyers #Loopholesmile
GOD BLESS YOUR LIFE
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mlennyma
#198 Posted : Tuesday, July 16, 2013 3:36:01 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
My only question and dilemma is to accept or turn down?
"Don't let the fear of losing be greater than the excitement of winning."
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King G
#199 Posted : Tuesday, July 16, 2013 3:40:45 PM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
I see the threshold of 75% not being met in this one. We might be locked in for a long time .. tussles
Thieves
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  | | Edit by user: Tuesday, July 16, 2013 3:47 PM | Reason: Not specified
Jamani
#200 Posted : Tuesday, July 16, 2013 4:31:36 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
youcan'tstopusnow wrote:
smitha wrote:
The break up fee agreement is illegal as it is designed to prevent a competing offer to be made. The $2.5M is payable by the company to DD, thus eroding shareholder value. It is also contrary to S. 56 of the Companies Act which prevents a company from providing financial assistance in connection with the purchase of its shares, which is what the break up fee is all about i.e. payment by Access to compensate DD in its quest to purchase Access shares.



Hmmm... If true, maybe Jamani should contact his lawyers #Loopholesmile


After all the govt clearance and support do you expect I will get justice in mutungas' court?
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