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TransCentury Sells RVR stake to Citadel
Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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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.  Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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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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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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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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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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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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Rank: Member Joined: 8/30/2010 Posts: 183 Location: Migingo
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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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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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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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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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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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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Rank: Member Joined: 1/3/2014 Posts: 257
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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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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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ohh mara 6bn.....oh 5bn...and now someone says its 3.27bn RINKDumb money becomes dumb only when it listens to smart money
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Rank: Member Joined: 1/15/2010 Posts: 625
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Transcentury is a laggard. They seem unable to execute and their strategy doesn't seem to make much sense. Now they want to focus on energy and what if Tullow decides that they won't start oil production after all? Or the oil prospecting gets court up in a court battle?
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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mv_ufanisi wrote:Transcentury is a laggard. They seem unable to execute and their strategy doesn't seem to make much sense. Now they want to focus on energy and what if Tullow decides that they won't start oil production after all? Or the oil prospecting gets court up in a court battle?  Boss, do you know what "ENERGY/POWER" means in TransCentury's context? E.A Cable, TANELEC, Cableries du Congo, etc. Sio PETROLI au DIESEL! Their business with Tullow falls under Civicon, which is "ENGINEERING"/Construction Division. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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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. I totally agree with you.TC sold its share bcoz the money needed to Make RVR a viable business is humongous....very few countries have the kind of locomotives we have most migrated to SGR long time ago...I hear Tanzania is about to complete their own. I think Citadel have the financial muscle to invest without encumbrances that comes with partnership....TC was a burden to citadel and IMHO it is good riddance. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Member Joined: 8/30/2010 Posts: 183 Location: Migingo
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Now this counter is headed south... Don't Work for Money, Let Money Work for You..
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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The transaction has led to a 500m loss in their books.. Until they do something with the cash its all about a free fall! Seeing is believing
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Rank: Member Joined: 2/1/2010 Posts: 272 Location: Nairobi
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Maybe because it's been revealed they took a possible Ksh500m hit from the sale of their RVR stake to Citadel. Unfortunately today RINK provider, BD website, hasn't been updated. The harder you work, the luckier you get
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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jerry wrote: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. Wow! 6bn seems high. I thought I read $38mn from Citadel's press release. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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jawgey wrote:The transaction has led to a 500m loss in their books.. Until they do something with the cash its all about a free fall! RINKI IKO WAPI????? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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dunkang wrote:jawgey wrote:The transaction has led to a 500m loss in their books.. Until they do something with the cash its all about a free fall! RINKI IKO WAPI????? Business Daily ya leo pg.9 Seeing is believing
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TransCentury Sells RVR stake to Citadel
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