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TransCentury Sells RVR stake to Citadel
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dunkang
#21 Posted : Tuesday, April 01, 2014 6:29:29 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
mwekez@ji wrote:
sib today wrote:
... no price was disclosed but the stake was valued at KES 3.8bn in 2012, suggesting a potential transaction value of KES 4-6bn, with an estimated IRR of at least 25%.


At KES 4B, thats ~14/- per share, at KES 6B, thats ~21/- per share. What percentage of Tranny's Value did Reli occupy?

The current market value of E.A Cable is ~KES 4B.d'oh!
Receive with simplicity everything that happens to you.” ― Rashi

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VituVingiSana
#22 Posted : Tuesday, April 01, 2014 6:37:05 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,356
Location: Nairobi
dunkang wrote:
VituVingiSana wrote:
What did they sell the 34% for? That's the million $ question...

Was Tranny under any pressure to sell?
NO
So, could they have sold at a price not favourable to them?
NO
Is Citadel Group just raising EGP8B (Approx. USD2.5B) for acquisitions (By 8th April 2014)?
YES
Do we really have to wait for the exact figures to know that Tranny have just KILLED IT!?
NO

It still doesn't answer the question. How much?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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jerry
#23 Posted : Wednesday, April 02, 2014 12:16:03 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
VituVingiSana wrote:
dunkang wrote:
VituVingiSana wrote:
What did they sell the 34% for? That's the million $ question...

Was Tranny under any pressure to sell?
NO
So, could they have sold at a price not favourable to them?
NO
Is Citadel Group just raising EGP8B (Approx. USD2.5B) for acquisitions (By 8th April 2014)?
YES
Do we really have to wait for the exact figures to know that Tranny have just KILLED IT!?
NO

It still doesn't answer the question. How much?

It's 6bn.
The opposite of courage is not cowardice, it's conformity.
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Mainat
#24 Posted : Wednesday, April 02, 2014 5:28:36 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Totally misguided sale IMHO. Maybe TC doesn't have the financial stamina. The Energy sector inawenyewe. Whoever gets the rail cargo right will hit a jackpot. And the business will grow exponentially. Logically.
But I guess investors will cheer the 10-20% return.
Sehemu ndio nyumba
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  | | Edit by user: Wednesday, April 02, 2014 5:31 AM | Reason: Not specified
georgegop
#25 Posted : Wednesday, April 02, 2014 7:24:03 AM
Rank: Member

Joined: 8/30/2010
Posts: 183
Location: Migingo
TransCentury sells stake in Rift Valley Railways for Sh5bn
Don't Work for Money, Let Money Work for You..
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dunkang
#26 Posted : Wednesday, April 02, 2014 7:55:58 AM
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Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
Mainat wrote:
Totally misguided sale IMHO. Maybe TC doesn't have the financial stamina. The Energy sector inawenyewe. Whoever gets the rail cargo right will hit a jackpot. And the business will grow exponentially. Logically.
But I guess investors will cheer the 10-20% return.

With the Standard Gauge Rail (SGR) coming, it would have been better to zoooooom!

By the way, what 10-20% return, it was more than 100%!
Receive with simplicity everything that happens to you.” ― Rashi

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Aguytrying
#27 Posted : Wednesday, April 02, 2014 8:47:09 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
dunkang wrote:
Mainat wrote:
Totally misguided sale IMHO. Maybe TC doesn't have the financial stamina. The Energy sector inawenyewe. Whoever gets the rail cargo right will hit a jackpot. And the business will grow exponentially. Logically.
But I guess investors will cheer the 10-20% return.

With the Standard Gauge Rail (SGR) coming, it would have been better to zoooooom!

By the way, what 10-20% return, it was more than 100%!


This is one of those questions an investor shoots first and ask questions later. Your flow chart reveals all we need to know about his deal now.
I have a feeling tranny may be going back to 50's very soon, even if temporarily. CABL is also on the M&A radar.
The investor's chief problem - and even his worst enemy - is likely to be himself
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Mainat
#28 Posted : Wednesday, April 02, 2014 9:28:26 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Dunkang-if you read the story, they paid circa Ksh3bn for their stake. Since then, they've been pumping money in. TC's own projections said revenue would grow 4times, if RVR made some minimal improvements. Who would walk away from that?
PS: RVR had guaranteed returns even under SGR

Sehemu ndio nyumba
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  | | Edit by user: Wednesday, April 02, 2014 9:33 AM | Reason: Not specified
snipermnoma
#29 Posted : Wednesday, April 02, 2014 1:37:54 PM
Rank: Member

Joined: 1/3/2014
Posts: 257
Transcentury must have assessed the available options and deemed selling their stake in RVR was the best option. With SGR coming, it frees up Transcentury to get back into the rail business and this time they could do so as the lead and not as a minority shareholder.
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Fyatu
#30 Posted : Friday, April 04, 2014 9:27:11 AM
Rank: Veteran

Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
ohh mara 6bn.....oh 5bn...and now someone says its 3.27bn RINK
Dumb money becomes dumb only when it listens to smart money
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