Wazua
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Scan group
Rank: Member Joined: 10/11/2007 Posts: 213
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so whats the material announcement
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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Saw Sasini results & CMC profit warning. Nothing on ScanGroup... (Yet) Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 2/26/2008 Posts: 4,449
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they warned on 'speculative trading' of their shares yesterday. what's the story?
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Scangroup Ltd could extend its dominance in the media buying and public relations market in East Africa by acquiring a stake in one of its key rivals. According to a reliable source, who cannot be named because of the sensitivity of the matter, Scangroup chief executive officer could this week be announcing his buyout of 10 per cent in Ogilvy & Mather. The deal is in line with the firm's CEO Bharat Thakrar goals. http://allafrica.com/stories/200912071340.html
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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What good does 10% of O&M do Scangroup (except for the WPP connection)? Isn't Scangroup (in Kenya) much larger than O&M? Or is there a potential merger? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Must say this Bharat guy is the consumate deal maker, yet his company is running well. @VVS not like Merali eeh? I like the business too [glamour of advertising and all], wish I had taken a good piece of the cake at IPO.
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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A company sitting on cash is a dangerous company. Last I checked Scangroup had 1B in cash. When Uchumi was sitting on cash ( I think it was 600M), the directors went to town. When Access was sitting on cash, they paid top dollar for (in my opinion) irrelevant companies. I hope Thakkar does not pay a hefty premium for that stake.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Could be strategic. Rumors have it that scangroup lost the media for coke. Now that's HUGE money especially considering the 2010 World Cup in Africa. Could the Coke media have gone to O&M? If indeed it's true that Scangroup has acquired a stake in O&M then I believe this would be the right time to set up an ad agency business to offer alternatives especially to competing companies. Remember when they did campaigns for two competing banks? The Bouquet for Barclays Bank and then Garden for Stanchart, asking why take a bouquet while you can have a garden? One bank had to move and they did. The same scenario will replay itself because I can't imagine MJ's Safaricom sharing the same agency with YU.
BBI will solve it :)
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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GG - Your examples are flawed 1) Uchumi - Always had cash since it went public. One of favorite managers was Suresh Shah (I made good money on Uchumi when I was starting out). Shah built up Uchumi from bottom. An old mzee told me that the day Shah leaves, he will sell his shares. I sold mine as well. Then came kirubi. Mwizi with his background in kenatco. 2) Access Kenya - I think the Somens will do OK. They need to bulk up but may have made bad choices. Overpaid for one acquisition. They have used cash + debt to expand their reach all over Nairobi. Good move. I met Thakkar at an investment conference in 2008. What he told us (we were a group) is that ScanGroup will keep the cash UNTIL they find a suitable investment. In the meantime they will leave it in Infrastructure T-Bonds earning 13% NET AFTER TAX. He felt the premiums sellers wanted were too high. He is right. Since SG raised the funds, the values of PR/Ads firms across Africa (Kenya is a cash cow not a growth market) has dropped. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Eh Heee! Oglivy & Mather worldwide and Scangroup to create pan-african joint venture - so says Capital FM right now. Some kind of share swap including Ogilvy SA and even the Ogilvy CEO gets something, but Ogilvy remains trading using its name etc etc... The deal maker in the Scangroup man is to be admired. This one must be subject to regulatory approval 
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Rank: Member Joined: 7/23/2008 Posts: 99
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is the market unaware of these 'news', No price movement at all
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Rank: Member Joined: 3/15/2010 Posts: 391 Location: nairobie
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@ haiyaa its has traded at 29.25 slowly goin up
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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LOL... I told you the jamaa is on the acquisition path! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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VituVingiSana wrote:GG - Your examples are flawed
1) Uchumi - Always had cash since it went public. One of favorite managers was Suresh Shah (I made good money on Uchumi when I was starting out). Shah built up Uchumi from bottom. An old mzee told me that the day Shah leaves, he will sell his shares. I sold mine as well.
Then came kirubi. Mwizi with his background in kenatco.
2) Access Kenya - I think the Somens will do OK. They need to bulk up but may have made bad choices. Overpaid for one acquisition. They have used cash + debt to expand their reach all over Nairobi. Good move.
I met Thakkar at an investment conference in 2008. What he told us (we were a group) is that ScanGroup will keep the cash UNTIL they find a suitable investment. In the meantime they will leave it in Infrastructure T-Bonds earning 13% NET AFTER TAX. He felt the premiums sellers wanted were too high.
He is right. Since SG raised the funds, the values of PR/Ads firms across Africa (Kenya is a cash cow not a growth market) has dropped. @vvs, I was looking at this thread after I noticed that Scan is at ksh 50 today. I had wanted to note that when I exited at ksh 65 I planned on reentry at ksh 55, but I'm now wondering if it can go lower. BTW, your comments above on Access, were you on sigara kubwa??? 
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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Gordon Gekko wrote:VituVingiSana wrote:GG - Your examples are flawed
1) Uchumi - Always had cash since it went public. One of favorite managers was Suresh Shah (I made good money on Uchumi when I was starting out). Shah built up Uchumi from bottom. An old mzee told me that the day Shah leaves, he will sell his shares. I sold mine as well.
Then came kirubi. Mwizi with his background in kenatco.
2) Access Kenya - I think the Somens will do OK. They need to bulk up but may have made bad choices. Overpaid for one acquisition. They have used cash + debt to expand their reach all over Nairobi. Good move.
I met Thakkar at an investment conference in 2008. What he told us (we were a group) is that ScanGroup will keep the cash UNTIL they find a suitable investment. In the meantime they will leave it in Infrastructure T-Bonds earning 13% NET AFTER TAX. He felt the premiums sellers wanted were too high.
He is right. Since SG raised the funds, the values of PR/Ads firms across Africa (Kenya is a cash cow not a growth market) has dropped. @vvs, I was looking at this thread after I noticed that Scan is at ksh 50 today. I had wanted to note that when I exited at ksh 65 I planned on reentry at ksh 55, but I'm now wondering if it can go lower. BTW, your comments above on Access, were you on sigara kubwa??? On Access, I was careful how I phrased it. I said the Somens (not AK) will do OK. In addition, I have admit the scenario for AK changed huge from 2009 to 2010...! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 2/20/2007 Posts: 767
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On Access, I was careful how I phrased it. I said the Somens (not AK) will do OK. In addition, I have admit the scenario for AK changed huge from 2009 to 2010...! [/quote]  They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 11/4/2008 Posts: 1,289 Location: Nairobi
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Gordon Gekko wrote:A company sitting on cash is a dangerous company. Last I checked Scangroup had 1B in cash. When Uchumi was sitting on cash ( I think it was 600M), the directors went to town. When Access was sitting on cash, they paid top dollar for (in my opinion) irrelevant companies. I hope Thakkar does not pay a hefty premium for that stake. Cash is cursed. Companies with huge reserves or retained profits always attract raiders. They take over the board and do deals to eat up those reserves with the money ending up in their pockets. A historical study of our market reveals this.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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From 39 and we are still going up now at 58.Is something in the offing?,i will be smiling at a 50% return if we get to 60.
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Rank: Elder Joined: 7/21/2010 Posts: 6,184 Location: nairobi
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All i know is that scan is a very bad dividend payer but good in bonus and capital gain. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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BIDS 64,100
Quantity Price Splits Time
11,600 58.00 2 12:21:43
12,600 56.00 2 12:21:43
15,000 55.50 2 12:21:43
10,000 55.00 1 12:21:43
9,900 54.50 1 12:21:43
ASKS 1,300
Quantity Price Splits Time
1,300 60.00 1 12:21:43
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- - - -
- - - -
- - - -
TRADES
Quantity Price Time
300 58.00 12:21:41
200 58.00 11:44:50
3,800 58.00 11:21:45
19,000 58.00 11:21:45
100 57.50 11:21:45
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