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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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mkonomtupu wrote:mkonomtupu wrote:while everyone is running away i'm back accumulating kengen. Mr. Market can be quite irrational. Kengen will in 2014 increase power generation capacity by a quarter once Olkaria IV is complete. The higher electricity tariffs are now in operation. Kengen will enjoy tax credits from the new power plants in rural areas. The demand for electricity went up 9%. Dealing with Mr. Market can be quite fun and exciting. If i was to cash out that's already 100k For one who was in cash,that was quick returns begging to be taken.
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Rank: Hello Joined: 1/13/2014 Posts: 4
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KenGen seems to be a good long term play, currently no supply at 13.85, so might seem a good short term play too.
The rights issue will definitely dilute the stock, but I don't think they will price it too cheap, the dilutive effects will be more than offset by the increased earnings that those plants will produce. Seems like a perfect defensive hedge over the long term
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Quote:NAIROBI (Reuters) - Kenyan power utility KenGen plans to raise 15 billion shillings from its shareholders in a rights issue offer this year, its chief executive said on Wednesday.
The state-controlled firm, which has 1,250 megawatts of generating capacity out of the countrys total of 1,600 MW, will use the funds to develop several new power plants as part of the governments plan to raise installed capacity to 5,000 MW by 2017.
Looking at the very ambitious plan we have for generation in the power sector, we need the money. We need the equity that will also help us raise more debt and maintain our capital structure, Albert Mugo, told his first news conference since his appointment.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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mkonomtupu wrote:Quote:NAIROBI (Reuters) - Kenyan power utility KenGen plans to raise 15 billion shillings from its shareholders in a rights issue offer this year, its chief executive said on Wednesday.
The state-controlled firm, which has 1,250 megawatts of generating capacity out of the countrys total of 1,600 MW, will use the funds to develop several new power plants as part of the governments plan to raise installed capacity to 5,000 MW by 2017.
Looking at the very ambitious plan we have for generation in the power sector, we need the money. We need the equity that will also help3 us raise more debt and maintain our capital structure, Albert Mugo, told his first news conference since his appointment. @mkonotupu. big up, once again. no wonder the rally. what a juicy rights issue. rights left for market after Gok takes its 80% will be 3 billion shillings worth of shares. oversubscription. pap. better buy some before the rights announcement if one wants to get a good chunk The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Aguytrying wrote:mkonomtupu wrote:Quote:NAIROBI (Reuters) - Kenyan power utility KenGen plans to raise 15 billion shillings from its shareholders in a rights issue offer this year, its chief executive said on Wednesday.
The state-controlled firm, which has 1,250 megawatts of generating capacity out of the countrys total of 1,600 MW, will use the funds to develop several new power plants as part of the governments plan to raise installed capacity to 5,000 MW by 2017.
Looking at the very ambitious plan we have for generation in the power sector, we need the money. We need the equity that will also help3 us raise more debt and maintain our capital structure, Albert Mugo, told his first news conference since his appointment. @mkonotupu. big up, once again. no wonder the rally. what a juicy rights issue. rights left for market after Gok takes its 80% will be 3 billion shillings worth of shares. oversubscription. pap. better buy some before the rights announcement if one wants to get a good chunk This is Kengen 2006 all over again. This time the resistance at 17 will be cleared easily. Life is short. Live passionately.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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The ball has shifted. Now the new MD is targeting rights issue by end of the year and not June as had previously been stated. The timing of the rights issue is dependent on preparations by the government/treasury not forgetting there is still the upcoming NBK rights issue. As for the shares to be issued I project half of the 2.2 billion shares is what is to be used for the rights issue targeting to raise ksh.15 billion. For now enjoy the ride;the rights issue might even be held next year. >T Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Kengen is not a capital gains share becoz the gvt owns a very big chunk of it which threatens the share growth since nobody knows the next decision on gvts stake...anytime the share gains the gvt will always think of offloading and it will remain so until a strategic investor is identified....hate me or like me. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 9/30/2013 Posts: 254
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wao atleast its by the end of the year,hi kitu haina timeline,the cabinet has not even approved it
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@mlennyama; Government has no plan of offloading it to a strategic investor because energy cannot be left in the hands of a privateer. There is less to lose by selling GDC or KPLC to a strategic investor than KENGEN. Also alot of the loans it has taken and intends to take from multi-lateral agencies like JICA,European Investment Bank are usually guaranteed by the state/treasury. So for sale to a strategic investor forget abt that story. Capital gains is there for those who bought last week at 11.50 and sold this week at 14 that is already more than a 20% gain. Also it's dividend are much better as compared to the ones of KPLC. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Different gvts will come with different opinions but the investor story was there,others never feel very comfortable in a company where changing gvts owns majority of it. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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The governments but the technocrats are the same. There is nothing different at treasury between president Kibaki's reign and Uhuru's reign. It's the same fish swimming in the waters. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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KENGEN this year it's hands are full as they have to race to bring on board the 280MW geothermal power. This project was majority financed by Japanese through JICA. The Japanese PM Shinzo Abe was in Africa last and early this week. Expect more loans to be given to KENGEN for the geothermal projects as Japan moves to cut the clout of China in Africa. That may have been the reason the incoming CEO is now saying they target to raise ksh.15 billion from the rights issue Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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So at the end of the day,japan will be kengens hidden strategic investor. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Quote:Electricity Government Owned Entities in this sector are involved in electricity generation, transmission and supply, and regulation of the sector. With respect to electricity, it is noted that Kenya Power and Lighting Company (KPLC) and Kenya Electricity Generation Company (KenGen) are partially privatized and may be candidates for further divestment. The two companies are critical in ensuring Kenya has adequate affordable electricity to drive industrialization and economic development. It is therefore important that any further restructuring of the two entities ensures Kenya’s energy requirements in a manner consistent with the national development goals. In this regard it is recommended that the Government Investment Corporation should consider increased shareholding in the Kenya Power and Lighting Company and Kenya Electricity Generation Company in a manner supportive of the national development goals. This is what the presidential task force recommended on KPLC and Kengen. Mr. Market is playing havoc on the govt plans. They have now reduced the rights to 15 billion. My thinking is the GoK may need to mop up the shares from the market before the rights issue or during the rights to prevent price volatility. This will not be last rights issue Kengen will need to keep coming back every 3 years for rights. Think long term act short term
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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mkonomtupu wrote:Quote:Electricity Government Owned Entities in this sector are involved in electricity generation, transmission and supply, and regulation of the sector. With respect to electricity, it is noted that Kenya Power and Lighting Company (KPLC) and Kenya Electricity Generation Company (KenGen) are partially privatized and may be candidates for further divestment. The two companies are critical in ensuring Kenya has adequate affordable electricity to drive industrialization and economic development. It is therefore important that any further restructuring of the two entities ensures Kenya’s energy requirements in a manner consistent with the national development goals. In this regard it is recommended that the Government Investment Corporation should consider increased shareholding in the Kenya Power and Lighting Company and Kenya Electricity Generation Company in a manner supportive of the national development goals. This is what the presidential task force recommended on KPLC and Kengen. Mr. Market is playing havoc on the govt plans. They have now reduced the rights to 15 billion. My thinking is the GoK may need to mop up the shares from the market before the rights issue or during the rights to prevent price volatility. This will not be last rights issue Kengen will need to keep coming back every 3 years for rights. Think long term act short term How about GoK buys the company and delist? That way GoK can do what ever they want without harming Wanjiku...it was even a mistake to list a strategic company like KenGen...That task force was not thinking.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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A rights issue means the gava will be paying like 10b,do they have money to mop up any other shares if taking their rights is still a heavy task? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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@deal, the market has been kind to kengen if you bought the PIBO so it was not a mistake the company has actually grown from 2006. Companies operate on the same basis. Anyway here are some recommendation of the taskforce which should show you the kind of thinking in govt right now Quote:This report also recommends that the current privatization programme be referred to the GIC which will determine how best to proceed with the programme. As far as is possible, there should be active efforts to grow the value of existing assets before disposal. The functions of the Privatization Commission will be transferred to the GIC. In addition, the proposed Government Investment Corporation be empowered to make Government investment decisions on portfolio basis and to hold the government shares in Government Linked Companies. @mlennyma, gava came through on the KQ rights issue you will be surprised
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@mlennyma; JICA has been KENGEN's hidden strategic investor for majority of their projects. @the deal; Listing of KENGEN was a good idea for Kenyans to share some of the fruits of the company like dividends and the share appreciation that was there in the initial years Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@mlennyma; the government will just defend it's share so that it remains with 70% stake. This company has been giving them consistent and handsome dividends since listing to gava. Out of the approximately ksh.1.32 billion they will pay as dividends end month gava will get around ksh.924million Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
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