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Briatm, Britam, Britam sounds like sweet candy!
Rank: Member Joined: 5/21/2014 Posts: 184
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mlennyma wrote:actuarywahisa wrote:Now why is the IFC deal turning into a rally? Kwani it's a takeover? it's a vote of confidence for a big fund to be a shareholder OK. What's the difference between Britam and ARM? is it the extra cash being pumped in and available to work vs retiring of debt? Or is it just better PR? I thought profits sustain share price and not just confidence or hope of a bright future. There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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My initial thought was Munga flipping his "Rawat" shares to IFC. But if these are newly created shares being subscribed for (j.mp/2i4HTa0) then my guess is that they ran into capital adequacy issues after resetting their FY reserves based on gross premium valuation methodology (which they adopted in the current year) plus mark-to-market of their portfolio and impairment of some of KES 3.2 Bn in deposits held with financial institutions a proportion of which must be at either Chase or Imperial. The dilution by IFC therefore became a necessary evil. The subscription date of 30/12/2016, a day just before the FY books close (31/12/2016) is also an interesting tidbit. Investment philosophy development in progress...
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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alotoftalk wrote:My initial thought was Munga flipping his "Rawat" shares to IFC. But if these are newly created shares being subscribed for (j.mp/2i4HTa0) then my guess is that they ran into capital adequacy issues after resetting their FY reserves based on gross premium valuation methodology (which they adopted in the current year) plus mark-to-market of their portfolio and impairment of some of KES 3.2 Bn in deposits held with financial institutions a proportion of which must be at either Chase or Imperial.
The dilution by IFC therefore became a necessary evil.
The subscription date of 30/12/2016, a day just before the FY books close (31/12/2016) is also an interesting tidbit. They have played their game smart enough to hoodwink ignorant shareholders. When somebody hears 'world bank',feels like Jesus coming to your house physically to dine with u. This is massive dillution,and sooner or later there will be price correction. Towards the goal of financial freedom
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Rank: Elder Joined: 6/23/2009 Posts: 13,549 Location: nairobi
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Ebenyo wrote:alotoftalk wrote:My initial thought was Munga flipping his "Rawat" shares to IFC. But if these are newly created shares being subscribed for (j.mp/2i4HTa0) then my guess is that they ran into capital adequacy issues after resetting their FY reserves based on gross premium valuation methodology (which they adopted in the current year) plus mark-to-market of their portfolio and impairment of some of KES 3.2 Bn in deposits held with financial institutions a proportion of which must be at either Chase or Imperial.
The dilution by IFC therefore became a necessary evil.
The subscription date of 30/12/2016, a day just before the FY books close (31/12/2016) is also an interesting tidbit. They have played their game smart enough to hoodwink ignorant shareholders. When somebody hears 'world bank',feels like Jesus coming to your house physically to dine with u. This is massive dillution,and sooner or later there will be price correction. The firm is doing quite badly.. And getting out now will be difficult since float is concentrated around a few.. Massive supply expected today
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 5/21/2014 Posts: 184
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alotoftalk wrote:My initial thought was Munga flipping his "Rawat" shares to IFC. But if these are newly created shares being subscribed for (j.mp/2i4HTa0) then my guess is that they ran into capital adequacy issues after resetting their FY reserves based on gross premium valuation methodology (which they adopted in the current year) plus mark-to-market of their portfolio and impairment of some of KES 3.2 Bn in deposits held with financial institutions a proportion of which must be at either Chase or Imperial.
The dilution by IFC therefore became a necessary evil.
The subscription date of 30/12/2016, a day just before the FY books close (31/12/2016) is also an interesting tidbit. That subscription date shouts compliance
more than anything. Thank you for pointing that out. More cash, just like a takeover over of another business, is not a good or a bad thing. What one does with the money or the acquired business is what counts. Profits and not hope. There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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This just shows that half year results were cooked and sugar coated. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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BRITAM=UAP Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Ericsson wrote:This just shows that half year results were cooked and sugar coated.
I will make my money and exit before munga exits,yesterday I was over 15% to the good "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/23/2009 Posts: 13,549 Location: nairobi
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mlennyma wrote:Ericsson wrote:This just shows that half year results were cooked and sugar coated.
I will make my money and exit before munga exits,yesterday I was over 15% to the good All the best @mlennyma the future belongs to the bold
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 2/8/2007 Posts: 808
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obiero wrote:mlennyma wrote:Ericsson wrote:This just shows that half year results were cooked and sugar coated.
I will make my money and exit before munga exits,yesterday I was over 15% to the good All the best @mlennyma the future belongs to the bold This is dilute on number of shares basis but they are paying a signficant premium to the market suggesting the company is substantially undervalued at current market prices. Brit remains an attractive target for global multinational insurance firms looking at market share in this region. Ignore at your own peril but it will be one of the better performing stocks by half year. Take that to the bank.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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For records  Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Kausha wrote:obiero wrote:mlennyma wrote:Ericsson wrote:This just shows that half year results were cooked and sugar coated.
I will make my money and exit before munga exits,yesterday I was over 15% to the good All the best @mlennyma the future belongs to the bold This is dilute on number of shares basis but they are paying a signficant premium to the market suggesting the company is substantially undervalued at current market prices. Brit remains an attractive target for global multinational insurance firms looking at market share in this region. Ignore at your own peril but it will be one of the better performing stocks by half year. Take that to the bank. IFC is a last resort funding source as a member of the world bank. This should not generate any excitement rather more queries on what is going in. Is Britam facing funds distress?
IFC was roped in the KQ rights issue back in 2012 to try and save the issue from flopping as it faced a serious NO BID situation. Fast forward to 2015, Stanlib I-REIT IPO also experienced a severe NO BID scenario and IFC was roped in to save the issue for it to float.
Nothing has changed for this golden handcuff. But for the market magicians to rope in IFC, indeed desperation has set in 
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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hisah wrote:IFC is a last resort funding source as a member of the world bank. This should not generate any excitement rather more queries on what is going in. Is Britam facing funds distress?
IFC was roped in the KQ rights issue back in 2012 to try and save the issue from flopping as it faced a serious NO BID situation. Fast forward to 2015, Stanlib I-REIT IPO also experienced a severe NO BID scenario and IFC was roped in to save the issue for it to float.
Nothing has changed for this golden handcuff. But for the market magicians to rope in IFC, indeed desperation has set in
Quote:IFC to purchase minority stake in Britam
The International Finance Corporation (IFC) has entered into a share subscription agreement with Britam Holdings for 224.2MN shares (10.37% of issued ordinary share capital) at KES 15.85 per
share (KES 3.5BN). This represents a 58.85% premium on Britam’s closing price of KES 10.00 as at Friday 30th December 2016 and would place the deal at P/E and P/B multiples of 159.9x and 1.6x respectively. The deal is subject to regulatory and shareholder approvals. Currently, Britam trades at P/E and P/B multiples of 100.9x and 1.0x respectively against industry median P/E and P/B multiples of 9.39x and 1.11x respectively. (Source: NSE, DBIB Research)
Pesa Nane plans to be shilingi when he grows up.
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Rank: New-farer Joined: 6/10/2013 Posts: 52
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Guys, quick question. I am currently invested in the Britam Money Market Fund. If Britam was ever to go bust, would my investment be ringfenced and protected? The funds are held with StanChart I believe.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@smitha; If Britam goes burst your money is gone. A liquidator will have to be appointed who will look into the assets and liabilities. Dispose off some assets to first pay creditors then the balance will be used to pay you the policy holder. Your investment is not ring fenced and protected by the mere fact they are held at stanchart Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Pesa Nane wrote:For records This just validates/justifies the Mauritius government claims that Rawat was running a ponzi scheme using depositors money. Just look at the sequence of events Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ericsson wrote:@smitha;
If Britam goes burst your money is gone.
A liquidator will have to be appointed who will look into the assets and liabilities.
Dispose off some assets to first pay creditors then the balance will be used to pay you the policy holder.
Your investment is not ring fenced and protected by the mere fact they are held at stanchart Money market fund is not a policy!!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Angelica _ann wrote:Ericsson wrote:@smitha;
If Britam goes burst your money is gone.
A liquidator will have to be appointed who will look into the assets and liabilities.
Dispose off some assets to first pay creditors then the balance will be used to pay you the policy holder.
Your investment is not ring fenced and protected by the mere fact they are held at stanchart Money market fund is not a policy!!!! Okay whichever but the key is any person whom Britam has their money. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 5/21/2014 Posts: 184
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The whole matter of finding the person who will agree to pump in money and the resulting dilution or the Ts&Cs that come with external money is something KQ shareholders will also need to grapple with sooner rather than later. And sadly I think the share will rally even then! There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Share price fall has commenced Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Briatm, Britam, Britam sounds like sweet candy!
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