Wazua
»
Investor
»
Stocks
»
I&M Bank to buy GIRO Bank
Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
|
VituVingiSana wrote:The Great wrote:Why do we have so many rights issues? Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money. Dividends is meant to make the choir members keep singing. If you deny choir members dividends they will stop singing songs .
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,350 Location: Nairobi
|
enyands wrote:VituVingiSana wrote:The Great wrote:Why do we have so many rights issues? Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money. Dividends is meant to make the choir members keep singing. If you deny choir members dividends they will stop singing songs . Have a Scrip Dividend [which is also a waste of money in fees, etc] or reduce the dividend or freeze the dividend. I&M increased the dividend from 2.90 to 3.90 when it could have frozen it at 2.90 for 2 years while explaining to shareholders the need to retain the 1/- for 'expansion' ... Not paying 1/- over 2 years = 800mn without paying lawyers, printers, CMA, NSE, brokers, etc additional fees for a small Rights Issue. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
|
VituVingiSana wrote:enyands wrote:VituVingiSana wrote:The Great wrote:Why do we have so many rights issues? Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money. Dividends is meant to make the choir members keep singing. If you deny choir members dividends they will stop singing songs . Have a Scrip Dividend [which is also a waste of money in fees, etc] or reduce the dividend or freeze the dividend. I&M increased the dividend from 2.90 to 3.90 when it could have frozen it at 2.90 for 2 years while explaining to shareholders the need to retain the 1/- for 'expansion' ... Not paying 1/- over 2 years = 800mn without paying lawyers, printers, CMA, NSE, brokers, etc additional fees for a small Rights Issue. Makes alot of sense . Give choir members a little dividends and promise them at the end of the contest they will get more. Unless the need for rights came after dividends were issued out.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,350 Location: Nairobi
|
enyands wrote:VituVingiSana wrote:enyands wrote:VituVingiSana wrote:The Great wrote:Why do we have so many rights issues? Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money. Dividends is meant to make the choir members keep singing. If you deny choir members dividends they will stop singing songs . Have a Scrip Dividend [which is also a waste of money in fees, etc] or reduce the dividend or freeze the dividend. I&M increased the dividend from 2.90 to 3.90 when it could have frozen it at 2.90 for 2 years while explaining to shareholders the need to retain the 1/- for 'expansion' ... Not paying 1/- over 2 years = 800mn without paying lawyers, printers, CMA, NSE, brokers, etc additional fees for a small Rights Issue. Makes alot of sense . Give choir members a little dividends and promise them at the end of the contest they will get more. Unless the need for rights came after dividends were issued out. The Giro Acquisition has been on the books for 12+ months. They knew they would pay out cash [2.5bn]. They knew that things were getting tight as IBL collapsed. Then there was the economic slowdown we felt in late 2015. Even GoK borrowed at 20% on T-Bills in Sep 2015. I think there was a failure of foresight by the Board when increasing the dividend and then asking for a (smallish) Rights Issue. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
VituVingiSana wrote:
Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money.
Thats the face value. Now load the premium, 75B,
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,350 Location: Nairobi
|
mwekez@ji wrote:VituVingiSana wrote:
Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money.
Thats the face value. Now load the premium, 75B, Post #53 Item 3 Rights Issue for KES 750mn Shares to DFI for 600mn ESOP for 150mn Raising 75bn would be a Rights for almost 2:1 which would be destined for failure under the current circumstances/market. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
VituVingiSana wrote:mwekez@ji wrote:VituVingiSana wrote:
Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money.
Thats the face value. Now load the premium, 75B, Post #53 Item 3 Rights Issue for KES 750mn Shares to DFI for 600mn ESOP for 150mn Raising 75bn would be a Rights for almost 2:1 which would be destined for failure under the current circumstances/market. Those are face value. Recheck the numbers e.g. 750M shares of Kes. 1 each is Kes. 750M. The shares will be issued at a premium. The rights issues wont be a single transaction and wont be within a short time
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,808 Location: NAIROBI
|
@VVS I feel you.You had high hopes with this counter and thought they would be different and then they come with a bogus rights issue. Their rights issue could even be worse than kcb in terms of level of dilution Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,350 Location: Nairobi
|
mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:VituVingiSana wrote:
Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money.
Thats the face value. Now load the premium, 75B, Post #53 Item 3 Rights Issue for KES 750mn Shares to DFI for 600mn ESOP for 150mn Raising 75bn would be a Rights for almost 2:1 which would be destined for failure under the current circumstances/market. Those are face value. Recheck the numbers e.g. 750M shares of Kes. 1 each is Kes. 750M. The shares will be issued at a premium. The rights issues wont be a single transaction and wont be within a short time @Mwekezaji - I give up. There's just so much one can ask someone to read. Don't worry about it anymore. @Ericsson - If you read post #53 Item 3, it talks of a maximum KES 1.5bn capital [cash not shares] raise & then breaks it down to 3 'categories' of which existing shareholders would have to come up with KES 750mn. As far as the increase in authorized share capital, that's a different beast. It can't be a Rights Issue as much as the foundation for an acquisition, merger or Strategic Investor. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
VituVingiSana wrote:mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:VituVingiSana wrote:
Some firms have stupid or greedy advisors. On one hand I&M is paying almost 1.6bn in dividends and then raising 750mn from a Rights Issue. What a waste of money.
Thats the face value. Now load the premium, 75B, Post #53 Item 3 Rights Issue for KES 750mn Shares to DFI for 600mn ESOP for 150mn Raising 75bn would be a Rights for almost 2:1 which would be destined for failure under the current circumstances/market. Those are face value. Recheck the numbers e.g. 750M shares of Kes. 1 each is Kes. 750M. The shares will be issued at a premium. The rights issues wont be a single transaction and wont be within a short time @Mwekezaji - I give up. There's just so much one can ask someone to read. Don't worry about it anymore. @Ericsson - If you read post #53 Item 3, it talks of a maximum KES 1.5bn capital [cash not shares] raise & then breaks it down to 3 'categories' of which existing shareholders would have to come up with KES 750mn. As far as the increase in authorized share capital, that's a different beast. It can't be a Rights Issue as much as the foundation for an acquisition, merger or Strategic Investor. It's in black and white. 750m Kshs from rights issue. Surely just read it's there The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Wazua
»
Investor
»
Stocks
»
I&M Bank to buy GIRO Bank
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|