http://www.businessdaily.../-/t74tdmz/-/index.html

It is official that Nakumatt is negotiating to sell a 30% stake for $25,000,000. The sale isn't complete but I figure the release of this information is to either:
- A strategic move to entice other bidders/buyers to up the price
- Very close to being completed

Furthermore,Nakumatt expects to raise KShs 4,000,000,000 from local banks which will boost their liquidity as they expand across E.Africa. I have a strong feeling that the new partners will also build new properties for them in various other countries.

What is not clear is whether Harun Mwau is leaving Nakumatt. Does anyone know what his current ownership stake in Nakumatt is?

Another benefit of having partners with deep pockets is the ability to leverage cheaper borrowings from banks/financiers. And Nakumatt wants to open 4 branches in Tanzania,3 in Uganda & 1 in Rwanda. All these in addition to the current stores 22 they have.

It would not surprise me to hear Nakumatt will open in S.Sudan or Burundi by 2011.

So where does that leave me? Well... I will have to wait another 2 years before I get a chance to invest in Nakumatt... since their 'cash needs' have been satisfied for now... unless Harun Mwau wants out & Nakumatt does an IPO...


Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

So everything is now in the open and Mo Ibrahim may soon bite the elephant.

This Mo Ibrahim guy, I've googled him and I think he's done quite well making his billions. He seems to have started from very far. Can you imagine how things would be if he was still running Celtel, including Celtel KE for that matter?

Aiissh @Vituss, kwani how many of you are there? Reading your reply I wouldn't guess you started the thread in the first place. Wazere do the necessary.


Now about Mo Ibrahim, don't know many Africans worth $2.5billion so I checked him up...
-the guy is just 63 about the age of many of our politicans / leading Kenyan businessmen, married to his only wife
-son of a clerk, from Sudan of all places, civil servant, teacher
-a techie studied electrical engineering, 1974 masters in then unfashionable radio waves thesis on "reuse of radio frequencies"

-1983 BT employed him in a startup but too much politics and in-fighting; he says "BT should have created Vodafone"
-frustrated, had enough, resigned and went to ground zero, turned to consulting from dining room with the ethos "to use the minimum amount of hardware to produce superior, interference-free coverage. Operators were spending billions, and if I could save them 10% on their network then I was saving hundreds of millions. So we can charge what we like."

-2000 sold first company which had 815 employees but noticed telecoms scramble for licences everywhere
-"The one place on earth where licences were available for free was Africa. Nobody wanted to go in."
-Celtel was born as number of mobiles in Africa grew from 7.5m to over 80m in just 5 years
-Mo with some reluctance sold for $3.4b to Zain in 2004, coming from a year of over 100% increase in net profit [though Kenya operation was unprofitable]
-etc. etc. etc.

-Time 100 builder and titan of 2008, 2009, #334 on Forbes 2009 list


Give credit where it's due bana and you can learn alot!

Folks, more intelligence info:

- Harun Mwau is no longer part of the Co.
- Only miros currently are 2 fellows with <10% shareholding in
the chain,
for now the Shah are the ultimate beneficial owners,
- new board to be reconstitued to accomodate new shareholders
- Not all of the KShs 4b they are seeking as a syndicated loan
facility from Kenyan banks will be deployed for their expansion
across the region. Indeed, a huge circa 80-85% of this is for
restructuring of their current facilities with local banks
- they will be opening >14 branches by end 2010.

All in all, new strategic partner will strengthen the chain's financial muscle.

By the way Tusky's is going regional big big time.
Laterz guys.

@VVS...Do you think Nakumatt is growing too fast? Would they end up the Uchumi way?

@intelligentsia: I can see additional Wendayi style branches. The larger branches might be tougher to do at the moment.

Either way... good luck to them!