obiero wrote:Ericsson wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:chiaroscuro wrote:nairobby wrote:Pkosing said they'll spend about Ksh 800 million to buy out minority shareholders
Domo, domo, domo!
There is nothing like that in the report!
But give him credit for he appears to know that minority shareholders are holding about 163 million shares and the NSE price is about Sh4.75, thus about Sh800M would be required to buy them out.
But the question remains: why would anyone pay Sh800 for something that is truly worth NEGATIVE sh270 million. Hiyo ni wizi na wazimu!
Fixated on KES 800m while KQLC and KLM get KES 27B worth in bonds
KQLC were forced to convert the debt to equity. KLM & those who bought shares in KQ do not deserve a bailout.
Deserved or not, it is coming.. And it will not be less than KES 8.52
Good luck
In the meantime, my KenRe dividend & bonus is coming
to help offset the loss on ARM. Actually, the loss on ARM was covered by many multiples by KK.
https://uk.reuters.com/a...tion-plan-idUKKCN1UK22Q
Minority shareholders will be bought out at about ksh.4.6 per share going by the article.
Can’t happen, won’t happen. No one is explaining why the buyout couldn’t have happened in 2017, before dilution of the so-called minority
Let us look at the bigger picture. The questions are:
1. Are parliament's recommendations for nationalization binding on Treasury and KQ?
2. Will the buyout happen and at what price?
These are the legal provisions:
3. PIIP proposal was presented to parliament to satisfy constitutional requirement for public participation since JKIA a GOK asset was involved.
4. Parliament played it's part by considering and rejecting the PIIP. Ideally, it should have stopped at the "No" answer.
5. Recommendation for nationalization is not binding on Treasury and KQ since it is not law. Parliament will have to pass a Bill or an amendment Bill declaring KQ a state corporation to make the recommendation actionable.
6. If Treasury decides to go ahead with the recommendations, nationalization will be subject to compliance with acquisition provisions under Companies Act, approvals of KCAA, CMA, NSE, CAK among others.
In conclusion:
7. Parliament's recommendations for nationalization are not binding on Treasury.
8. As a matter of policy, likelihood of nationalization is 50-50. It depends on Parliament's and/or Treasury's initiative.
9. In practice, UMK's government is disorganized, inefficient and broke. Expect Omtata to go to court to block Treasury from using public funds to buyout worthless shares. Secondly, KQ is insolvent, with a transational CEO. It is flying rudderless.
10. Open offer is still the best option for KQ to get capital for temporary relief.
My thoughts, comments are welcome.
Life is short. Live passionately.