wazua Sun, Jan 5, 2025
Welcome Guest Search | Active Topics | Log In | Register

2 Pages<12
Fidelity Bank acquired by SBM of Mauritius
Options
Previous Topic · Next Topic
Ericsson
#21 Posted : Wednesday, November 23, 2016 7:04:52 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,701
Location: NAIROBI
@Obi 1
Wewe sasa should be downgraded to veteran.
Capital injection of sh.1.5bn means the business liabilities and obligations outweighed the assets.
If SMB didn't come on board this bank was grinding to a halt. If the business was sound and no need of capital injection then the value could have been more than $1 and running to billions.
Have a look at Fidelity last financial results and look at the value of its assets, it will give you the clue.

ION Indian businesses in kenya are getting a hit.
Of late the number of mergers, acquisition and buyouts of their businesses has become many
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Back to top
WWW
 Report Abusive | Report SPAM
KulaRaha
#22 Posted : Wednesday, November 23, 2016 8:18:08 AM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
Ericsson wrote:
@Obi 1
ION Indian businesses in kenya are getting a hit.
Of late the number of mergers, acquisition and buyouts of their businesses has become many


Lack of confidence in family run outfits? Customers getting nervous watching shareholders growing personal businesses at cost of the company?

Business opportunities are like buses,there's always another one coming
Back to top
 Report Abusive | Report SPAM
KulaRaha
#23 Posted : Wednesday, November 23, 2016 8:45:02 AM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514


Wow, buyer says they paid 100 bob, seller says they're getting paid 1.3B.

Who's lying?

Obi 1 Kanobi wrote:
The rest of your post is just speculation, example, I don't think Fidelity's liquidity issues were as well documented as you put here. When you don't have facts, the simplest solution is probably the correct answer.


@Obi....ebu explain 11% liquidity ratio
Business opportunities are like buses,there's always another one coming
Back to top
 Report Abusive | Report SPAM
KenyanEconomist
#24 Posted : Wednesday, November 23, 2016 12:17:15 PM
Rank: New-farer


Joined: 5/7/2014
Posts: 40
Obi 1 Kanobi wrote:
KenyanEconomist wrote:
I know 1USD deals are not uncommon. I've done 1ksh deals myself. My question is, had u been there with 2 dollars would they have sold it to you?


My guess: Only if you agree to match the KES 1.5bn capital injection.

Aren't you contradicting yourself here. Why would the shareholders of Fidelity care about capital injection if all they are interested in is to get rid of the bank.[/quote]

Most likely CBK is in control of this transaction, and not Fidelity shareholders. CBK would want to ensure bank is in good footing (and solvent) going forward. Remember role played by New York Fed when Bear Stearns, Merrill were in trouble. Closer to home, think KCB and Chase Bank.

Another interesting twist, Fidelity says deal was for up to KES 1.3bn while international press still maintains $1 deal value. Who is telling the truth??
Back to top
 Report Abusive | Report SPAM | Edit by user: Wednesday, November 23, 2016 12:33 PM | Reason: Not specified
iris
#25 Posted : Wednesday, November 23, 2016 1:00:29 PM
Rank: Member


Joined: 9/11/2014
Posts: 228
Location: Nairobi
Where is @Pesa8?? Will probably be more helpful than these "most likely" opinions
Back to top
 Report Abusive | Report SPAM
lochaz-index
#26 Posted : Thursday, November 24, 2016 8:05:51 AM
Rank: Veteran


Joined: 9/18/2014
Posts: 1,127
muganda wrote:
Fidelity Bank:

First Kenyan bank to be acquired for the princely sum of $1 USD, yes one US dollar.

http://www.cnbc.com/2016...nyas-fidelity-bank.html


Cbk had to pull this off as stealthily as possible. KE cannot risk the panic that would ensue in the wake of another failed bank. Still you have to wonder how many such deals cbk will successfully arrange for the failing banks.

How many potential investors can play ball at short notice? Can they defuse the situation were it a tier I or tier II bank that was facing imminent collapse? Living on borrowed time? I think so.
The main purpose of the stock market is to make fools of as many people as possible.
Back to top
 Report Abusive | Report SPAM
Mainat
#27 Posted : Thursday, November 24, 2016 8:11:10 AM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,590
To quote myself, this was a CBK solution. This would have worked well for Chase bank last yr as the list of foreign banks and saccos wanting to a piece of the market was long. 7 months later, the cap and Donald the Duck have changed everything.
Still, the banking licence is a potent attraction, but ofcourse won't rescue a tier 1 bank

Mainat wrote:
CBK announced the deal. That is telling...Probably has a list of foreigners who are interested in entering the market and just picked the call to one.
I also recall the suspension of new licences sometime back.
The two are linked.


That berk signing the interest cap will wipe tier 3 and 4s which are now either unattractive or very cheap

Sehemu ndio nyumba
Back to top
 Report Abusive | Report SPAM
KulaRaha
#28 Posted : Thursday, November 24, 2016 9:07:18 AM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
There you go, fully negotiated by CBK. Like I said, shareholders were lucky to even get $1.

http://www.nation.co.ke/...&utm_campaign=buffer
Business opportunities are like buses,there's always another one coming
Back to top
 Report Abusive | Report SPAM
Pesa Nane
#29 Posted : Thursday, November 24, 2016 10:11:11 PM
Rank: Elder


Joined: 5/25/2012
Posts: 4,105
Location: 08c
iris wrote:
Where is @Pesa8?? Will probably be more helpful than these "most likely" opinions



Pesa Nane plans to be shilingi when he grows up.
Back to top
 Report Abusive | Report SPAM
Pesa Nane
#30 Posted : Thursday, May 11, 2017 11:30:12 AM
Rank: Elder


Joined: 5/25/2012
Posts: 4,105
Location: 08c
Pesa Nane plans to be shilingi when he grows up.
Back to top
 Report Abusive | Report SPAM | Edit by user: Thursday, May 11, 2017 11:32 AM | Reason: Not specified
Users browsing this topic
Guest
2 Pages<12
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.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2025 Wazua.co.ke. All Rights Reserved.