Mukiha, Scubidu,
When is the right time for me to buy Carbacid Shares? I'm very interested in them.

Crediting of the bonus shares was done today and it maintained the price above 100 bob could be a goodtime to get in.As for Centum=Rasimu Ltd hapo kuna rough game.

@scubidu
It make sense if Rasimu=100% Centum could be it's there acquation function.
Carbacid on the other hand have enough cash to do there expansion since there market is growing last year there was a 43% jump in sales and 40% growth in profits.Centum on the other hand are smiling all the way to the bank after cashing in on Ksh 24.33 M In final and special dividend and unrealised capital gains of over Ksh 1.1B
Anyway with all said there are still the sole produces of CO2 guys are still drinking alot of carbonited stuff.Sodas,beers etc

Centum does not have much heft at Carbacid even with 22% since the Patel guy (& his wife) also control the same %.

I think Centum will get a director on board though matiba was locked out BUT that was matiba's fault. He would have raided the firm for his failing ventures.

Thanks alot Scubby, what you are saying makes a lot of sense to me. Yes I might get in Cabs for some capital gain , however I'm not in a hurry. I have noticed post split, or post bonus shares tend to really depreciate in value:read E.A Cables BBk, Equity and stay down for a loong time, so nita "Chill" before rushing in to buy them.

What centum did about the Rasimu deal was just a safe buy. As a bright investor you dont just buy as yourself but also use another company to hold onto a new investment, 'not putting your eggs in 1 basket , incase of any problems! The separate entity principle.

Then the Carb deal is inline with their main industry,BEVERAGE!! by owning all the cocacola bottlers, its also wise to buy the sole supplier of CO2. That was quite bright.People have to take SODA!

Vituvingi- Its not even about the the Carb deal but the overall benefits associated with using a subsidiary in a venture.
Certain developments in a company's lifecycle can trigger the need for a subsidiary, such as the launch of a new venture with different risk characteristics than the company’s existing line of business(CO2 industry is quite new to them) or the opening of operations in a new region or foreign country. Other times, companies need to form subsidiaries to facilitate the potential sale of part of the company.This will also shield itself from possible financial fallout from its new venture and make it easier and faster to acquire or dispose any of the investments held by the subsidiary.


FROM AN ACCOUNTING PERSPECTIVE, creating a subsidiary makes sense because it allows companies to enjoy substantial tax benefits (not so sure) and creditor protections.

But a business doesn’t have to be involved in a risky operation to justify the creation of a new subsidiary. Any time you’re starting a new venture, there’s always risk of loss .You want to protect the profitable part of the business from the losses of the new business you are starting, and by putting the new business into a separate subsidiary, you can do that.So I think Centum is just prudent and cautious n also trying to diversify risk. Kuddos.

Given the benefits associated with forming subsidiaries, it’s not surprising that virtually all sizable companies use them. It’s also not surprising that companies sometimes misuse them.( eg the case of the NewYork Taxi Cabs in US)

@VVS Isn't that grossly unethical? Will BOC be paying the market price?