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CFC Insurance at NSE by October
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mwala
#1 Posted : Wednesday, June 09, 2010 3:15:50 PM
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Joined: 9/22/2008
Posts: 79
Guys what do you think about this ,just read that the listing of the company will be by October this year.
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trizher
#2 Posted : Wednesday, June 09, 2010 4:54:13 PM
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Location: Tikrit - IRAQ
@Mwala
where did u read that?
...We do it for the $$$$!!
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mwala
#3 Posted : Thursday, June 10, 2010 5:58:19 AM
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mukiha
#4 Posted : Thursday, June 10, 2010 7:40:00 AM
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Joined: 6/27/2008
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mwala wrote:
Guys what do you think about this ,just read that the listing of the company will be by October this year.


This is what I would call "olds"...as opposed to "news"!

I've been stocking up CFC shares for quite a long time in readiness for this listing!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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My 2 cents
#5 Posted : Thursday, June 10, 2010 8:03:08 AM
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Joined: 6/2/2010
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@mukiha, at least you will be paid some monies when cfclife is spun out of CFC bank. As a previous KenGen shareholder, I was totally pissed off when Geothermal Development Authority was spinned off KenGen with no benefits at all to shareholders. This is what you call thievery!!!!

You buy a company, they split it into two parts and you do not get shares in the second company. Essentially your investment is diluted.
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Scubidu
#6 Posted : Thursday, June 10, 2010 8:31:59 AM
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Location: Nairobi
@my2cents & mukiha. So if I understand you correctly. Your buying CFC Stanbic Group now, in anticipation that when they're listed separately you'll have the choice as to whether you'll be compensated as a shareholder of either CFC Stanbic Bank or CFC Insurance. Isn't that the problem here, the share rallied but know one knows what they are buying. Why not wait and find out how the process will be handled?
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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mukiha
#7 Posted : Thursday, June 10, 2010 8:35:05 AM
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My 2 cents wrote:
@mukiha, at least you will be paid some monies when cfclife is spun out of CFC bank. As a previous KenGen shareholder, I was totally pissed off when Geothermal Development Authority was spinned off KenGen with no benefits at all to shareholders. This is what you call thievery!!!!

You buy a company, they split it into two parts and you do not get shares in the second company. Essentially your investment is diluted.

No! GDC was NOT spun off from KenGen! It was created from scratch. So was KETRACO.

KenGen did not get any "smaller" when these two were formed! So KenGen shareholders cannot make any claim on these.

KenGen, however, was hived off from KPLC
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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mukiha
#8 Posted : Thursday, June 10, 2010 8:40:29 AM
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Scubidu wrote:
@my2cents & mukiha. So if I understand you correctly. Your buying CFC Stanbic Group now, in anticipation that when they're listed separately you'll have the choice as to whether you'll be compensated as a shareholder of either CFC Stanbic Bank or CFC Insurance. Isn't that the problem here, the share rallied but know one knows what they are buying. Why not wait and find out how the process will be handled?


The formula is known: One share of CFC Ins for one Share in CFC Stanbic Holdings. Only approvals are pending.

The bet is whether the two separate shares will be worth more than the single share...
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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VituVingiSana
#9 Posted : Thursday, June 10, 2010 8:53:01 AM
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Joined: 1/3/2007
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@my2cents: Erm, your 2 cents seem to be just 2 cents!

As @mukiha pointed out that GDC was created to exploit the Geothermal potential but without the need to be within an entity like KenGen.

GDC can undertake capital intensive (& long-term) projects backed by GoK guarantees & multilateral (or development) funding... KenGen (coz of the 'profit' motive as well as other reasons) will find it harder to negotiate these deals where 'public' money is involved...

Do I agree with GDC being funded by GoK? That is a whole different kettle of fish...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mwala
#10 Posted : Thursday, June 10, 2010 8:58:26 AM
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at 11.00 it has traded 5600 demand at 70.5 against a supply of 74,the average price as at now is 71.50.
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Scubidu
#11 Posted : Friday, June 11, 2010 1:53:48 AM
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@mukiha. One share of CFC Ins for one of CFC Stanbic Holdings. So I assume the existing shareholders get priority as to whether they want insurance or banking. Few questions since I haven't followed this too carefully.

(1) So which are you buying, CFC Ins or CFC Bank and what will be the shareholding structure of both entities?

(2) Why bet two separate entities that where once one are worth more than the one?

(3) I think over 80% of assets and equity are currently vested in the banking side, so how much will a current shareholder be compensated if they don't want to be part of the insurance business?

(4) Although CFC Stanbic Bank is the jewel of the current group will you have to contribute more capital as soon as it's listed?

(5) What happens to the Ksh10.4 billion goodwill currently on the books?
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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mukiha
#12 Posted : Friday, June 11, 2010 9:18:31 AM
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Joined: 6/27/2008
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@scubidu;
1) I am buying both! CFCS Holdings is the listed company and it owns both the bank and the insurance arms

2)When a business operates without a "taller uncle" watching over it, it tends to do much better. CFC Insurance is a small entity compared to CFC Stan Bank. Cutting it free will give it the shot in the arm to grow to greater heights. Time horizon = 3yrs

3) They will not have a choice to refuse. An SGM vote will determine whether to de-merge or not. If passed, ALL shareholders will get the one-for-one share in CFC Insurance and those who don't wish to hold on to it will sell it in the open market - CFCI will be listed. The question of a cash compensation does not arise.

4) No. It already has well over sh1b in paid-up share capital

5) The good-will will remain in the books of CFC Stanbic Holdings. And I wouldn't worry too much about it: There is also quite a healthy Share-premium figure (13.6b) on the other side of the BS. You see, when CFC bought Stanbic Kenya, they paid with (newly created) shares. And while the price of Stanbic was pegged higher than the NAV (hence the goodwill), the (CFC) shares handed over to Stanbic Holdings Africa were also priced at a premium (sh115 cf the Sh30 NAV at the time).
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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